In view of the current economic climate, you may wish to consider paying your tax liabilities early, especially if you have the cash available simply sitting in the bank.
HMRC will accept payments by an individual using a Certificate of Tax Deposit up to 12 months in advance, although the interest rates are relatively low for smaller deposits (only 2% if less than £100,000, but up to 4.75% for deposits in excess of £100,000).
A company can simply make advance payments in the usual way, and will normally receive interest from HMRC, depending on exactly how early the payment is made - but once again rates may be less than those paid commercially.
However, depending on the amounts involved, you may find that this potential ‘loss’ is an acceptable price to pay for peace of mind. In both circumstances we recommend that you take expert advice.
For further information contact the Ensors Tax Team or your usual Ensors contact.
