COM90001 - Payments: processing payments: introduction
A company must calculate its liability to CT and pay the appropriate amount to HMRC by the
- Normal due date (Word 49kb) for an AP ending on or after 1 October 1993
Or, for a Quarterly Instalment Payment (Word 38kb) (QIP) case
- Instalment due date (Word 41.5kb) for APs ending on or after 1 July 1999
From 1 April 2011, all companies must pay their Corporation Tax and CT-related liabilities electronically for any accounting period. Related liabilities include interest charges on overdue CT and penalties for not filing CT returns on time. An electronic method of payment includes the following
- Payments made at a bank or post office
- Direct Debit
- Direct payment (payments made by the Internet or over the telephone)
- Bill Pay
- Debit Card
- Credit Card
However there may still be occasions where a company send in a cheque to Banking Operations Shipley or a local office. Where a payment is made by cheques we will still accept the payment and process in accordance with the instructions in the Debt Management and Banking Manual at DMB200100. To discourage the use of cheque payments we will treat the payment as being made on the second business day following the day the cheque was received.
You may view details of payments and other accounting postings credited to a COTAX record using Function VPPD (View Payment and Posting Details).
Where it is not possible to allocate a company tax payment to the intended AP, it is allocated to the company’s Suspense record.
It is only possible to use a Certificates of Tax Deposit (CTD) purchased before 1 October 1993 in settlement of COTAX liabilities. These payments will therefore be rare. It is important that if you receive a CTD you deal with it immediately and follow the guidance in the Debt Management and Banking Manual at DMBM2011125.
For reasons of economy it is HMRC policy only to issue a receipt for payment where
- The taxpayer or agent specifically requests one
- Exceptionally where a payment in cash has been accepted
Payments are handled on SAFE for
- All APs ending before 1 October 1993
- S419 ICTA 88) and S747 charges for APs ending on or before 30/06/1999
- Common non-COTAX assessment types
Payments are handled on IRIS for
- Overpayments allocated to OAS (Word 24kb)