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Are there benefits of paying corporation tax early ?

As an HMRC incentive you may be gifted with interest for paying your Corporation Tax early.

Providing you get your finances organised promptly and submit your payment before its due date (9 months and 1 day after your accounting Year End) – you should accrue interest from the time of your payment to your expected payment date, as drawn out by HMRC.

So if your accounting Year End is 12th February and you submit your CT return in September, you will receive interest until 12th February.

Not only will you collect a nice little profit on your tax bill but you’ll also be granted the opportunity to better calculate and manage your cashflow to allow for future planning.

Knowing that you have available funds will really help determine where you want your business to grow.

If your Corporation Tax is more than you can currently rustle up – by being proactive you will to allow yourself time to prepare the funds before it becomes a necessity and a problem.

In the event that you need us to correspond with HMRC over a dispute or error, it’s best to get in there at the earliest possible time, as HMRC are notoriously busy.

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