Skip to content
Solved

COM90001 | Payments: processing payments: introduction

From HM Revenue & Customs · COTAX Manual

A company must calculate its liability to CT and pay the appropriate amount to HMRC by the normal due date (see Glossary) or, for a quarterly instalment payment (QIP) case, the instalment due date. See COM90025 for more information.

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

  • 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 Accounting Period (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. From 23 November the CTD scheme is closed and it is no longer possible to purchase new certificates, but existing certificates will continue to be honoured until 23 November 2023. It is important that if you receive a CTD you deal with it immediately and follow the guidance in the Debt Management 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 Income and Corporation Tax Act (ICTA) 1988 and S747 charges for APs ending on or before 30 June 1999

  • common non-COTAX assessment types listed at COM23133

Movement of Money Service (MOMS) handles payments for overpayments allocated to OAS.