Surely, if I close my company, I pay my Corporation Tax now?

I was asked this question last week. The client was thinking of closing his business to go and do something else.

One of the sticking points was that he thought that if he ceased, the Revenue will immediately ask for any tax due on profits earned in the final trading period.

The normal Corporation Tax payment date is nine months after the end of the annual accounting date.

I was happy to advise that, although ceasing business will create a short final accounting period, any tax due is not payable until nine months from the end of that period. This gives the client time to collect his outstanding debts to pay the tax due.