Tax deposit certificates need to be used this year
HMRC is writing to taxpayers who have purchased a certificate of tax deposit (CTD) to remind them that the scheme is closing this year. When do these need to be used by, and what should you do if you can’t use them?
A CTD could previously be purchased as a way to lodge money with HMRC in advance of an actual tax liability and, until 2017, was open to individuals and companies. A CTD was useful where an enquiry was ongoing as a means to save interest on an eventual assessment. The scheme closed from November 2017, but CTDs purchased prior to that can still be used. However, this will cease on 23 November 2023. HMRC is writing to all parties that it believes have unutilised CTDs to remind them that they will not be able to use them after the cut-off date, but where the correct correspondence address is not held by HMRC, CTD holders may miss the reminder letter.
If you hold a CTD but do not receive a letter, you should write to HMRC at the following address:
CTD Team, Floor 6, 1 Atlantic Square, 21 York Street, Glasgow, G2 8JQ
If you cannot utilise your CTD, you should follow HMRC’s guidance to withdraw it promptly. If you have lost a certificate, you will need to contact HMRC urgently at the address above to resolve this.
Related Topics
-
Planning ahead for pension salary sacrifice changes
From 6 April 2029, both employers and employees will be required to pay Class 1 NI on pension contributions in excess of £2,000 made through a salary sacrifice arrangement. What can you do about it?
-
Marginal relief - responding to an HMRC nudge letter
HMRC is running a campaign to clamp down on incorrect claims for corporation tax marginal relief (MR). In what circumstances might you be challenged by HMRC and how should you respond?
-
Can you claim input tax on costs linked to electric cars?
Your business intends to go green and buy new electric cars. Can you claim input tax on the purchase of the vehicles and their subsequent fuel costs? Additionally, what recent change has been announced by HMRC?