From April 2011 companies and self employed individuals need to be aware of the changes that have been made to the payment of corporation tax and Class 2 national insurance.
Corporation tax
From 1 April 2011, companies and organisations will have to and pay all Corporation Tax and related payments electronically. This includes interest charges on overdue Corporation Tax and penalties for not filing Company Tax Returns on time.
After March 2011 payments may only be made by cheque in exceptional circumstances and then the money will not be treated as “paid” by HM Revenue & Customs (HMRC) until the day the funds clear, not the date of the receipt of the cheque.
HMRC now have new bank account details to make electronic payments by Bacs, internet/telephone banking or CHAPS. Payments made to HMRC’s old bank accounts will no longer be accepted.
In general you should allow 3 working days for your tax payment to reach HMRC. If your payment is late you may be charged interest and a surcharge.
National Insurance
Class 2 NIC is now due on 31 July and 31 January (as for self-assessment) instead of monthly or quarterly.
If you would like to know how any of these changes affect you personally then please give us a call on 01733 371180