Corporation tax is calculated on profits a limited company has made in the accounting period payable 9 months and 1 day later i.e. if the company’s year-end is 31 March then the corporation tax needs to be paid by 1 January.
You can pay online either by bank transfer or by debit / credit card.
Income tax is paid on business profits if you are self-employed and needs to be paid by 31 January after the tax year ending 5 April i.e. the tax for the year ending 5 April 2018 needs to be paid by 31 January 2019. If your tax liability is a bit high or you don’t have a lot of tax collected at source (maybe through an employed job alongside your self-employment) then you will also need to make Payments on Account.
Payments on Account are half of the previous year’s tax paid on 31 January and 31 July to try to lower the amount outstanding at the year end.
You might be able to have your tax liability collected through PAYE if you are receiving a salary or pension that is taxed at source. If not, you can pay online either by bank transfer or by debit / credit card.
Insight: Understanding deadlines does not provide you with solutions to managing payments on account and cashflow. Speak with your accountant about designing a payment structure for future liabilities.