Plan to accelerate corporation tax payments

HMRC have quoted in their tax simplification consultation paper:-
“You pay your bills monthly why not tax? As long as it’s not more expensive to do it that way” (Soletrader, SA)”
“It sounds like an attractive proposition. I wouldn’t have drawers full of receipts! It would also save me from paying a huge tax bill at the end of the year” (Sole trader, SA)
“Having regular payments for HMRC will mean [it’s] easier to balance the books and know where the business stands [for] finance” (10-49 employees, CT)
“Not knowing how much tax is due is difficult as I don’t like shocks and it may mean I don’t have the money available. Hence knowing if I’m over or under paying on a more regular basis will help, and it also helps cash flow” (2-9 employees, CT and VAT)

This is fine for some businesses, but having to pay earlier than the current 9 months post balance sheet date will be a burden for some, especially seasonal businesses who may have become dependent on the current policy and therefore may find it hard to adapt.

83 thoughts on “Plan to accelerate corporation tax payments

Leave a Reply