How to pay corporation tax online?

In the online world of business handling, you must be wondering how to pay corporation tax online in the UK. You also must be aware of corporation tax payment being a necessary requirement, and we understand that’s why you are here. All the limited companies in the UK are required to pay corporation tax on their company’s profit. In this blog post, we will uncover the necessary details of how you can pay corporation tax online in the UK. So, without further adieu, let’s dive in!
How to pay corporation tax online?

Before jumping in with both feet, let’s acknowledge the elephant in the room: why choose an online process? The answer is simple – convenience. Paying corporation tax online has ended the career of mailing cheques and filling out paper forms. With online payment, you can get:

Speed and efficiency: You can instantly pay corporation tax online; avoiding the delays that come with the traditional paperwork method and embracing accuracy.

24/7 accessibility: You have 24/7 access to pay your corporation tax bill anytime, anywhere with an internet connection.

Reduced risk of errors: With online payment, you can reduce the risk of errors as online systems automatically validate payment details, minimising the chance of human error.

Secure and paperless: Online payments are the most secure; your information is protected without having to engage in paperwork.

Are you eligible to pay corporation tax online?

To pay corporation tax online, the first thing to check is whether your business qualifies for online filing or not. As the owner of a business, you must have:

Company registration: Your company must be registered with Companies House in the UK.

Unique Taxpayer Reference (UTR): Online corporation tax payments in the UK require your Unique Taxpayer Reference (UTR).

Be registered for Corporation Tax: All the limited companies and some other business structures need to register for corporation tax,

Have an active Government Gateway account: Through a government gateway account, you get access to various government services, including tax administration.

File your corporation tax return electronically: You can easily file your corporation tax online. Paper returns are not compatible with online payments.

To make sure you smoothly pay your corporation tax online, gather the following:

Your 17-character Corporation Tax payment reference number: This unique identifier is found on your tax return or HMRC notices.

Your Government Gateway login details: Username and password for your online account.

Your bank account details: You must have your bank account number, sort code, and any online banking credentials to pay your corporation tax online.

A step-by-step guide to paying corporation tax online

Having everything you need to pay corporation tax online, let’s dive headfirst into the online payment process:

  1. Log in to your Government Gateway account.
  2. Select “Pay for a tax” from the “Taxes” section.
  3. Choose “Corporation Tax” and select the relevant accounting period.
  4. Enter your 17-character payment reference number.
  5. Review the payment details, including the amount and due date.
  6. Choose your preferred payment method:
  • Direct debit: This convenient option allows automatic payments directly from your bank account.
  • Faster payments or CHAPS: These instant bank transfer options are ideal for urgent payments.
  • Debit or corporate credit card: While convenient, fees might apply.

7. Confirm your payment and follow any additional instructions.

Choose an online service/platform wisely

Choosing an online platform to help you pay corporation tax accurately is a wise decision; let the experts do their job effortlessly. Here is what to look for while choosing an online platform or a service provider.

  • Payment structure
  • Customer support
  • Compliance and security
  • Feature set
  • User-friendly interface
  • User reviews and reputation

There are various platforms which provide accountancy services but to look for a reliable and cheap accounting firm could be a tough nut to crack.

Key tips in filing corporation tax online

The following pointers will come handy during your online corporation tax filing process:

  • Schedule payments in advance: You can avoid burning the midnight oil by setting up reminders or scheduling payments through Government Gateway.
  • Double-check your details: To avoid processing delays, make sure all of your information, including the payment reference number, is correct.
  • Keep records of your payments: Maintain copies of your payment confirmations for future reference.

For more information, check out the following resources:

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