Corporation tax bill

[WWESTY]

Just got this years £14k bill.... (I know, its only cos we made a profit so I should be )

Could do some research and/or ring the accountants but thought I'd get quick answer here - can this be paid by instalments? Anything else I could do rather than have to make one single large (to me) payment?

TIA

[iaint]

WWESTY said:

Just got this years £14k bill.... (I know, its only cos we made a profit so I should be ) Could do some research and/or ring the accountants but thought I'd get quick answer here - can this be paid by instalments? Anything else I could do rather than have to make one single large (to me) payment? TIA

Don't think it can be paid in installments if it's due now. You could pay in bits (or put money aside in your own account accruing interest) before the due date. I think it's duw 9 months and 1 day from your companie's end of year date.

Late payment will incur fines and interest.

[Eric Mc]

The tax should be paid in full 9 months after the end of the annual accounts date. Any payments made after that date will be chrged interest.

If you do intend to pay the balance off by instalments, you MUST contact the Revenue in advance to obtain permission to do so and you must have a valid reason why you cannot pay the bill in the normal way.

[WWESTY]

Thanks for those responses.

Is cashflow a "valid reason"....??

Looks like we'll just have to swallow the pill and pay up!!

[Eric Mc]

Only in extreme circumstances. Using the words "extreme hardship" might influence them in allowing an instalment basis for repayments. Once agreed, the might give you up to six months to pay - but you must pay the correct portion on the correct date every month. Any slippage and the deal is off.

They WILL charge interest on a daily basis on the elements of the balance outstanding.

[WWESTY]

Eric Mc said:

Only in extreme circumstances. Using the words "extreme hardship" might influence them in allowing an instalment basis for repayments. Once agreed, the might give you up to six months to pay - but you must pay the correct portion on the correct date every month. Any slippage and the deal is off. They WILL charge interest on a daily basis on the elements of the balance outstanding.

Thanks Eric.

[jamieboy]

WWESTY said:

Can this be paid by instalments?

I did this a few years ago - one good year was followed by a really rubbish one, so I was short of cash. I phoned them up, they couldn't have been more helpful, and I paid it over three months.

I think as long as you talk to them, they try not to punish you too hard.

[WWESTY]

jamieboy said:

I phoned them up, they couldn't have been more helpful, and I paid it over three months.