Corporation Tax: No more Refund Cheques or Tax References

Earlier in the summer HMRC made a statement aimed at companies and other organisations which pay Corporation Tax (CT). This concerned two changes to its administration.

Refunds: HMRC is phasing out payable orders (HMRC’s equivalent to cheques) for tax refunds. It hasn’t given a firm cut-off date but is encouraging all those that pay CT to provide information so it can send refunds direct to their bank accounts via Bacs, which is more efficient and quicker. In future, include bank details with your CT tax return. It must be a UK bank account in your organisation’s name or that of an authorised nominee. If you’ve already given HMRC bank details to set up a direct debit, you still need to include them on the CT return.

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Tax references: HMRC will no longer give out CT tax references over the phone. Apparently it receives many thousands of calls from directors and others who represent their companies etc. asking to be reminded of their company’s unique taxpayer reference (UTR). It says that this uses up valuable resources and so future requests by phone will be refused. If you can’t find your UTR, your accountant should know it, or if you don’t have an accountant and have registered for HMRC online services, you can find it by logging into your Business Tax Account, or on letters and notices from HMRC.

So just to reiterate: HMRC is phasing out cheques for Corporation Tax (CT) refunds. In future include your company’s bank account details on CT returns so that refunds can be sent by Bacs. Also, HMRC will no longer give out your CT reference over the phone, so make sure you keep a note of it.

For more information, we provide a Business Consultation to ensure our clients benefits from tax planning and accounting matters.

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Penalties: Corporation Tax


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