Corporation Tax and Vat Deadlines
Corporation Tax and VAT are amongst the most significant financial responsibilities facing a business owner. You will have to deal with a range of Corporation Tax deadlines throughout the year and, if your business is VAT registered, you will also have to meet regular VAT filing and payment deadlines.
Corporation Tax notificationThe first deadline is for registration. You must inform HMRC within three months of starting a new active company – that is, a company that is trading. You will normally receive an Introductory Pack from HMRC shortly after registering your business, and this will contain the forms you need to fill in. The deadline still applies even if you don’t receive the pack, though; in these cases you should call HMRC and ask for a copy of CT41G. This is also available from the HMRC website.
Corporation Tax filingOnce you have notified HMRC, you will be sent a form CT610, which sets out your filing and payment deadlines. You will normally have 12 months to file your return after your Corporation Tax accounting period ends. The deadline is referred to as the ‘statutory filing date’.
It is important to remember that you must complete a return even if you do not owe any Corporation Tax. If you miss the filing deadline, you will receive a financial penalty of at least £100.
Corporation Tax paymentYour corporation tax payment deadline is referred to as the ‘normal due date’. The date by which you must pay will depend on the amount you owe.
If your taxable profits for the period are £1.5 million or less, your normal due date will fall nine months after the end of the accounting period. This means that you will be required to pay your Corporation Tax bill before your are required to file your return.
If your taxable profits for the period are over £1.5 million, you will normally be required to pay your bill in four instalments. For 12 month accounting periods, the first payment will normally be due six months and 13 days after the end of the period. The three remaining payments will be due every three months after this.
VAT filingIf you submit your VAT return online, it will normally be due by the seventh day of the second month following the end of your VAT accounting period. So, for periods ending on 31 January, online returns will be due by 7 March.
If you file on paper, your return will normally be due one month after the end of the period. The due date will be clearly marked on the return.
VAT paymentYour VAT bill is normally due on the same day as your return. If you file online, you must make payment electronically by the same due date.
If you choose to file on paper and pay by cheque, you must ensure that the cheque has cleared by the due date.
Finally, if you pay by Direct Debit, the bill will be collected three working days after the due date.
It is absolutely imperative that you meet your filing and payment deadlines. If you are having trouble paying, you should contact HMRC immediately.