Corporation tax is due 9 months and 1 day after the end of your accounting period, which is usually your financial year but it may differ if you have changed your accounting period during the year or you are in the first year of trading. You can check your accounting period on your Notice to Deliver a Tax Return.
How to pay your Corporation Tax can be found here https://www.gov.uk/pay-corporation-tax
We recommend setting up a Direct Debit to pay your VAT bill - this method gives you an extra 3 days until the payment needs to be taken - for example if your VAT return quarter ends on 31st December your DD will be taken on 10th February, or the next working day.
If you don't have a DD in place then you can pay HMRC directly, remembering to quote your VAT number. All of the details can be found here:
From 6th April 2020 the rules on reporting a gain from selling property for a UK resident have changed and you now have 30 days in which to report and pay the Capital Gains tax arising on that sale.
There's more about what this means for you in this video post
If you would like us to report this for you then you will first need to ensure that you have a Government Gateway User ID and password set up. Then you can ask us to apply to act on your behalf and we can get an authorisation link sent out to you (being authorised to complete your self assessment tax return does not cover this new CGT portal so we will have to request a further authorisation).
There will be fines and interest on tax not declared or paid on time so it's really important that you discuss with us any plans to sell rental or second properties in good time so that we can help you to comply with the new rules.
Self-assessment tax has two deadlines in the year; 31st January and 31st July. The total amount of tax for the last tax year has to be paid by 31st January (so for example the tax year ending 5th April 2016 has to be paid by 31st January 2017). Some taxpayers also have to make payments on accounts for the latest tax year as well. These are paid in two slices; one on 31st January and one on 31st July. So if you have payments on account to make for the year to 5th April 2017 these are due on 31st January 2017 and 31st July 2017. These amounts already paid are then deducted from the balance of tax to pay on the following 31st January.
It's now easier and cheaper than ever to offer multiple payment methods to customers. This can help you get paid faster, and provide a better service and user-experience. You should consider the following options:
- Bank transfer
- Standing Order
- Direct Debit
- Debit/Credit Card
- Credit Account
Many small businesses think that Direct Debit and Card payments are too expensive and difficult to implement. Recently some great providers such as Go Cardless for Direct Debit, and Stripe for card payments, have turned this around and now provide payment services with no fixed fees or set up costs at all, and competitive transaction costs. With online portals and no need for you to take card details directly, all of the compliance work is handled by the provider. These two services link seamlessly into Xero, so if you're already a Xero user and want to take card or direct debit payments, give us a call to find out more on implementing these services.
Where do I find my Corporation Tax Reference Number? Also called my Company UTR (Unique Tax Reference)
Your company's 10 digit UTR (Unique Tax Reference) number and 3 digit tax office code is found on correspondence from your Corporation Tax Office. You first receive it a couple of weeks after your company has been incorporated on the “CT41G” letter by post. It looks like this:
If you've lost track of this number you can request for the code to be resent to your registered office by calling:
HMRC on 0845 366 7819
You can also find the code on your reminder to file a Corporation Tax Return, or on a previous Corporation Tax Return if you’ve filed one before.
Not to be confused with.....
Your Company Registration Number (8 digits long and given by Companies House)
Your personal Unique Tax Reference – this is also 10 digits but used on your personal tax return.
Follow this link to the HMRC website www.gov.uk/pay-self-assessment-tax-bill
for all of the available options. Don’t forget that payment is due to reach HMRC by 31st January and if you pay by cheque or via Billpay it will take at least 3 working days to clear into the HMRC account.
PAYE and NICs are due from the employer to HMRC by 22nd of the following month (unless you have a quarterly payment period).
HMRC do offer a Direct Debit option but this currently is for a single payment which means you need to log in and update your payment every month; we advise to continue paying by bank transfer until a full DD service is offered by HMRC.
You can find the correct bank details to send your payment to here
Don't forget to enter the full reference with your payment which includes the final 4 digits indicating the month and tax year that you are making the payment for - this helps to eliminate allocation errors at HMRC.
If we run your payroll for you you'll find your reference to use on the Statutory Return, an example of which you can find below, with the reference highlighted in yellow. The final 4 digits represent the year (20 for 2020) and month (13 for Month 13 which is used for post-year end payments such as Class 1aNICs on P11d benefits)
As an HR consultant I’m often asked if HR really has any place in a business, let alone a small business and if it’s just expensive paperwork that gets in the way of doing real business? To answer this question, over the next few months I’m going to invite you read about various HR related topics, the different areas of HR, what they do, the costs of using it and the costs of not using it and let you decide whether HR is expensive paperwork or an important asset that every business should have access to no matter how big or how small.
This month’s topic will touch on Employee Relations (ER), as we discuss the importance of employment contracts.
When your small business starts to grow you may start to hire new staff, which is an exciting development. Managing staff however, creates many new situations and demands which you might not have encountered before, even if you have managed people before. Dealing with the paperwork, decisions and legislation involved in human resources can be time consuming and confusing, not to mention the financial risk involved if anything goes wrong.
Similarly many small businesses in this position believe that not having anything in “writing”, such as a contract means they can have more flexibility in how they operate, especially because it’s easier to move the bad employees on right?!?
This is your Unique Tax Reference. It’s 10 digits long. You can have one personally, which is the reference you need to file a self assessment tax return, but a business also has it’s own UTR which is quoted on correspondence from HMRC regarding Corporation Tax.
If you're having trouble paying your personal tax bill then the first thing you should do is speak to HMRC. If your bill is not yet due, then you have the opportunity to arrange a time to pay agreement with them. If your tax bill is overdue and it has already been passed to debt collection then you will need to speak directly to Debt Management. You can find more information and the correct phone numbers to ring here:
There is a special button in Xero for Overpayment by a customer:
Within the bank rec, go to the transaction and choose Create. Then click the "add details" at the bottom right of the blue box for the transaction.
Under Section 2 you'll see you have a section called Received As and a drop down - in there select Overpayment and the screen turns pink. Fill in the details and it attaches the overpayment to the customer's account so you don't lose track of it.
Then to record the cheque being paid back to them if you go into your Sales Invoices and look at Awaiting Payment you should see the Overpayment there as a credit on the account. If you click into it you can record the cheque payment at the bottom of the screen just as you can when paying a bill.