If you don’t pay your tax on time you will be charged interest at 3% and possibly a penalty. But the methods you can use to pay tax are being restricted, as HMRC is nudging people to pay electronically.
To pay by cheque you need an appropriate pre-printed payslip, whether you pay at a bank counter or send the cheque directly. HMRC does not officially accept cheques in the post for payment of corporation tax, although it will bank any cheques it receives. You can currently pay a tax bill of up to £10,000 at a Post Office counter, but this service is being withdrawn from 15 December 2017.
A current alternative is to use a credit or debit card online. There is a fee for paying by credit card. However, HMRC is withdrawing the facility to pay tax using a personal credit card from 13 January 2018. You will still be able to pay tax bills with any debit card or with a corporate credit card. HMRC would prefer you to pay via a bank transfer made by BACS, CHAPS or the faster payment service.
Try to avoid using your company’s credit card to pay your personal tax bills, as this will create a loan owed by you to your company. Where such a loan exceeds £10,000, a benefit in kind charge arises. If the loan is not repaid within nine months of the end of the accounting period in which it arose, the company must pay additional corporation tax.