So, you’ve filed your accounts & tax returns and now you need to pay the tax you owe! What happens next?
This really depends on your trading status!
Sole traders, partnerships, and individuals; The deadline for having your tax return filed with HMRC is the 31st January each year, this is also the point at which any tax owing becomes due. If you are organised and have calculated your taxes earlier in the year, then you can pay your taxes before this date, which can be a good idea as late payment could result in interest being added to the amount you owe.
Limited companies; Most companies have their year-end date set as the 31st March each year to fall in line with the end of the tax year that finishes on the 5th April. As a general rule, the corporation tax generated from trading activities is due to be paid 9 months and a day after the company’s year-end date. For example, if the year-end date is the 31st March then the corporation tax will become due on the 1st January the following year.
It’s worth pointing out that HMRC recently announced that they will no longer accept payment of taxes by personal credit card, however, they will accept payment by using a corporate (business) credit card.