Keeping up with tax payments is something every business owner knows is important.
On that note, HM Revenue & Customs (HMRC) has recently updated its payment details for certain tax regimes.
Bank transfers remain one of the easiest ways for businesses to pay taxes.
Businesses must use the correct payment information and understand the payment processing times to ensure HMRC receives payments promptly.
HMRC’s new bank details
The new bank details for HMRC affect the below tax regimes:
- Plastic Packaging Tax
- Biofuels or gas for road use — Fuel Duty
- Economic Crime Levy
- Soft Drinks Industry Levy
- Trust Registration Penalty
Use the following details depending on where your business bank account is based.
If your business account is in the UK:
- Sort code – 08 32 10
- Account number – 12529599
- Account name – HMRC General Business Tax Receipts
If your business account is overseas:
- IBAN – GB86 BARC 2005 1740 2043 74
- BIC – BARCGB22
- Account name – HMRC General Business Tax Receipts
All payments must be made in pounds sterling. Banks may charge if any other currency is used.
Tax return and payment deadlines for businesses
Meeting tax deadlines is crucial to avoid penalties. There are two main deadlines businesses need to keep in mind:
- Tax return filing deadline – The deadline for submitting your tax return is 12 months after the end of the accounting period it covers. Failing to file on time will result in penalties.
- Corporation Tax payment deadline – The deadline to pay your Corporation Tax bill is usually nine months and one day after the end of the accounting period.
Penalties for late filing of tax returns
If you do not file your Company Tax Return by the deadline, you will face penalties. These penalties increase over time:
- One day late – £100 penalty
- Three months late – Another £100 penalty
- Six months late – HMRC will estimate your Corporation Tax bill and add a penalty of 10 per cent of the unpaid tax
- 12 months late – Another 10 per cent of any unpaid tax
If your tax return is late three times in a row, the £100 penalties increase to £500 each.
Penalties for tax returns more than six months late
If your tax return is more than six months late, HMRC will issue a tax determination, estimating the amount of Corporation Tax owed.
This is a legally binding assessment, and you cannot appeal against it. You must pay the Corporation Tax due and file your return.
Once your return is submitted, HMRC will recalculate the interest and penalties you need to pay.
HMRC charges interest on unpaid tax from the due date until the payment is made. As of 20 August 2024, the late payment interest rate is 7.50 per cent.
Appeals against penalties
If you have a reasonable excuse for missing a deadline, you can appeal against late filing penalties online.
After completing the online form, print it and send it to the address provided on the form.
However, you must file your Corporation Tax return before appealing.
What you’ll need to appeal:
- Your company’s Unique Taxpayer Reference (UTR)
- The date on the penalty notice
- The penalty amount
- The end date of the accounting period the penalty relates to
- An explanation of why you missed the deadline
For personalised advice on managing your tax obligations, contact our team of accountancy professionals who can provide expert advice.
