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Last updated: 2 Feb 2022
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Can you defer Corporation Tax payment?

Sometimes circumstances that you could never have predicated mean you are not in a position to pay your tax bill on time. If you find yourself in such situation you must discuss it with HMRC so that they can fully consider what options they can provide to help you.
What are the reasons for deferring tax payment?

What are the reasons for deferring tax payment?

The last couple of years have thrown challenge after challenge at business owners, and unfortunately some have not survived. But it’s not just big world changing events that warrant a tax deferment, we know that any small mishap can throw small businesses into financial strain. There is support available, and you are not alone if you find yourself in a position where you need to defer your tax payment. 

How to request the Time to Pay Arrangement

How to request the Time to Pay Arrangement

This option will give businesses more time to pay their taxes and the option to pay in instalments. To do this you will need to directly contact HMRC’s Payment Support Service (PSS). Before doing this you should have the following ready: 

  • Your unique 10-digit Taxpayer Reference number
  • The amount of your tax bill that you’re struggling to pay and reasons why
  • Your attempts at trying to get the funds together to pay your bill 
  • How much you think you can pay now and the estimated extra time you’ll need to pay the rest 
  • Your bank account details

From this information HMRC will determine whether or not you are eligible for this arrangement. If you are not eligible then you could agree new payment dates with HMRC. Whatever your situation, make sure you keep HMRC updated so that they can factor everything into their decision. It is really important that you do this before your payment deadline because any late payments will incur penalties. 

What are the consequences of deferring your tax payment?

What are the consequences of deferring your tax payment?

There are no negative consequences for deferring your tax payment as HMRC will have assessed your situation and agreed its legitimacy. If you cannot meet your payment then requesting deferral could be a worthwhile option to consider. 

Can Corporation Tax be paid in instalments?

Can Corporation Tax be paid in instalments?

If you have taxable profit greater than £1.5 million then you will be required to pay your Corporation Tax in instalments. If your profits are less than this then the deadline to pay is 9 months and 1 day after your accounting year-end. HMRC will consider case-by-case exceptions, including the option to pay in instalments, but you will need to explain your situation to them directly. 

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Let us share the burden

Let us share the burden 

If you find yourself unable to pay your tax bill, it can be very worrying. There are likely many ‘what-if’ scenarios running through your head. If you have any concerns then let us know. 

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