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HMRC internal manual

COTAX Manual

From
HM Revenue & Customs
Updated
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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) or, for a quarterly instalment payment (QIP) case, the instalment due date (Word 41.5kb).

Acceptable methods of payment

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.

  • Bacs.
  • CHAPS.
  • Payments made at a bank or post office.
  • Direct Debit.
  • Direct payment, which is payments made by the internet or over the telephone.
  • Bill Pay.
  • Debit card.
  • Credit card.

(This content has been withheld because of exemptions in the Freedom of Information Act 2000)

(This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000) (This content has been withheld because of exemptions in the Freedom of Information Act 2000)

You can see 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.

Companies can also use a Certificate of Tax Deposit (CTD) in settlement of COTAX liabilities, but these must have been purchased before 1 October 1993 and they are therefore 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 DMBM201110.

Receipts

To reduce costs, we only issue a receipt for payment where the taxpayer or agent specifically requests one or, exceptionally, where you have accepted a payment in cash.

Other IT systems which handle CT payments

SAFE handles payments for:

  • all APs ending before 1 October 1993
  • S419 ICTA 88 and S747 charges for APs ending on or before 30 June 1999
  • common non-COTAX assessment types listed at COM23133.

IRIS handles payments for overpayments allocated to OAS.