HMRC steal interest on early CT payment

[rectifier]

Last year when I got my CT bill, my accountant put a note on the payment to the effect that if you paid the CT before the due date, HMRC will pay you interest of 0.5% until the due date.

Given that's a better rate than the standard CA interest rate I thought "why not".

This year when I got my CT bill I asked my accountant if the interest earned on last year's payment had been offset. The response was that the interest earned was too small for them to refund or offset, so they just pocketed it.

Trivial amount of money I know - gets my goat though.

Anyone else had this?

[oilboil]

No - I (and I guess a lot of others) put the tax money into a higher interest account until it is due - this pays more than 0.5% interest so is a better use of the money

[northernladuk]

How much was it? If it's that small is it really worth worrying about?

Anyone else thinking Richard Prior at this point?

[rectifier]

How much was it? If it's that small is it really worth worrying about?

Anyone else thinking Richard Prior at this point?

Nope course it's not worth worrying about in terms of the value - HMRC just hack me off with this behaviour. You can be sure if I owed *them* interest, no matter how low the value, they'd be onto me.

They did it to me a couple of years ago with a paterntity leave credit which they refused to honour which was about 250 quid - ever since then I've been sensitive to it.

[PerfectStorm]

Aldermore's easy access savings account pays double - 1%. So you may as well bank it, as well as the rest of your company's cash, in there until needed.

[jamesbrown]

Last year when I got my CT bill, my accountant put a note on the payment to the effect that if you paid the CT before the due date, HMRC will pay you interest of 0.5% until the due date.

Given that's a better rate than the standard CA interest rate I thought "why not".

This year when I got my CT bill I asked my accountant if the interest earned on last year's payment had been offset. The response was that the interest earned was too small for them to refund or offset, so they just pocketed it.

Trivial amount of money I know - gets my goat though.

Anyone else had this?

No. Create an HMRC online account if you don't have one. You should see any interest there. When you submit your next CT return, the interest should be offset, so the amount owing will be less than shown on your CT600 for that year. Methinks your accountant is mistaken. I always pay close to the deadline, but the interest accrued is a few quid and it's always offset against the next return.

[Michael at BI Accountancy]

No. Create an HMRC online account if you don't have one. You should see any interest there. When you submit your next CT return, the interest should be offset, so the amount owing will be less than shown on your CT600 for that year. Methinks your accountant is mistaken. I always pay close to the deadline, but the interest accrued is a few quid and it's always offset against the next return.

I'd agree with this, probably just sat on your account and will be rolled forward to the next year if you have paid the full corporation tax payment as per your return.

[Old Greg]

I'd agree with this, probably just sat on your account and will be rolled forward to the next year if you have paid the full corporation tax payment as per your return.

With interest.

[rectifier]

I'd agree with this, probably just sat on your account and will be rolled forward to the next year if you have paid the full corporation tax payment as per your return.

That's exactly what I asked my accountant - why doesn't it just roll forward... But no, less than a certain amount and it is written off / stolen.

However, this thread has finally pushed me into action to open an Aldermore account so that's a result.

[PerfectStorm]

That's exactly what I asked my accountant - why doesn't it just roll forward... But no, less than a certain amount and it is written off / stolen.

However, this thread has finally pushed me into action to open an Aldermore account so that's a result.

Do it, shouldn't take you long to get an easy £50+ a month for stuff just sitting there