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HMRC gives reminder on changes to tax payments

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HM Revenue and Customs (HMRC) has reminded businesses that a number of important changes to the way that taxes are paid come into effect this month.

Companies and organisations have to submit their company tax returns online and pay all corporation tax and related payments electronically.

When, exceptionally, payment is made by cheque after March 2011, the funds will be treated as being received by HMRC on the date when cleared funds reach HMRC’s bank account, not the date when HMRC receive the cheque.

HMRC will start issuing late payment penalty notices to customers who paid their PAYE late in the 2010-11 tax year.

From April 2011, businesses that should have submitted their VAT returns online but sent it in by paper instead will be charged a penalty. These penalties will apply to returns for accounting periods ending on or after 31 March 2011.