What your business needs to know about an important HMRC update

Business owners take note.  

HM Revenue & Customs (HMRC) has updated its bank details for certain tax regimes, and failing to use the new information could lead to issues.  

Don’t let something as simple as an incorrect account number disrupt your tax payments. 

Updated HMRC bank details 

The new bank details HMRC have provided are only for payments to the below tax regimes: 

• Plastic Packaging Tax 

• Biofuels or gas for road use — Fuel Duty 

• Economic Crime Levy 

• Soft Drinks Industry Levy 

• Trust Registration Penalty 

Make sure you are using the right bank details based on where your business account is located. 

For UK-based accounts: 

• Sort code: 08 32 10 

• Account number: 12529599 

• Account name: HMRC General Business Tax Receipts 

For overseas accounts: 

• IBAN: GB86 BARC 2005 1740 2043 74 

• BIC: BARCGB22 

• Account name: HMRC General Business Tax Receipts 

All payments must be made in pounds sterling. If you pay in any other currency, expect to be charged extra by your bank. 

Key tax deadlines 

Missing tax deadlines can hit your business hard. These are two dates you can’t afford to overlook: 

• Tax return filing: Submit your tax return within 12 months of your accounting period’s end. Late submissions lead to penalties. 

• Corporation Tax payment: Pay your bill nine months and one day after the end of your accounting period. 

Penalties for missing deadlines 

If you miss the deadlines, penalties pile up fast: 

• 1 day late: £100 penalty. 

• 3 months late: Another £100 penalty. 

• 6 months late: HMRC estimates your tax bill and adds a 10 per cent penalty. 

• 12 months late: An extra 10 per cent penalty on unpaid tax. 

If you’re late three times in a row, the £100 penalties jump to £500 each. 

Once you’re six months late, HMRC will estimate what you owe.  

You won’t be able to appeal, and you’ll have to pay whatever they decide.  

After you file your return, HMRC will recalculate the penalties and interest owed. As of 20 August 2024, the late payment interest rate stands at 7.5 per cent. 

Can you appeal? 

If you’ve got a valid reason for missing a deadline, you may be able to appeal the penalties online. However, you must file your Corporation Tax return before appealing. 

To appeal, you’ll need: 

• Your company’s Unique Taxpayer Reference (UTR) 

• The date on your penalty notice 

• The amount of the penalty 

• The accounting period end date the penalty relates to 

• A clear explanation of why you missed the deadline 

Need help? Get in touch 

If you need support managing your tax obligations, contact our expert team today. We’ll guide you through the process and help you stay compliant.