TT158: Corporation tax is going electronic! Or is it?
From 1 April 2011 all corporation tax payments and the filing of corporation tax returns will have to be done electronically. At least that’s what the press releases say.
Previously HMRC have accepted payments for corporation tax by cash, cheque or electronically.
From 1 April 2011, or so the Revenue’s press releases have claimed, only electronic forms of payment will be accepted.
The acceptable forms of payment include: –
- Direct debit
- Internet or telephone banking
- Debit or credit card via Bill Pay
- Bank Giro or at a Post office
- By post
The last two seem to go against the press releases, paying at a bank or post office by cheque using a bank giro counts as an electronic payment!
Likewise HMRC will continue to accept cheques by post!
However, the date HMRC recognises the cheque payment as having been made is changing.
They will only mark the corporation tax liability as settled when they have cleared funds in their bank account rather than previously recognising the liability as being settled on the day that HMRC received the cheque.
HMRC are recommending a 6 day lead time for payments by cheque, 3 days for the postal system and 3 days for the banking system.
As we explained in Topical Tip 151 Online filing of Corporation Tax documents all corporation tax returns, including the accompanying financial statements and corporation tax computations must be filed electronically in a digital format known as iXBRL from 1 April 2011.
Barnes Roffe LLP will be going live with full on line filing from early January 2011 to make us fully compliant with the latest HMRC requirements. The team has been working hard throughout the year with relevant software providers. All Barnes Roffe clients can therefore rest assured that we will be able to assist you during the transition.Talk to Barnes Roffe today