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Paying tax by Certificate of Tax Deposit | What is HMRC Certificate of tax deposit scheme?

Paying tax by Certificate of Tax Deposit | What is the HMRC CTD scheme?

Mike Wakeford

What is the Tax deposit Scheme?
The Certificate of Tax Deposit scheme allowed users to deposit money with HMRC and use it later to pay tax liabilities. The date that the certificate was purchased was known as the effective payment date. The scheme closed for new purchases on 23 November 2017.

However, at the time, HMRC had committed to honour existing the remaining certificate of tax deposits until 23 November 2023. As this date approaches, it is important that certificate tax of deposit holders take appropriate action. 

What should previous certificates of tax deposit scheme holders do now?
There are a number of options, including contacting the Certificate of Tax Deposit team before the scheme closes to tell HMRC how you want to use the certificate. Users who think they will still have certificates open after 23 November 2023 can contact HMRC to arrange a refund.

If you have a certificate of tax deposit with HMRC you must use this before the 23rd of November for any of your tax liabilities. If you have a certificate of tax deposit, you must use it by the deadline. Although HMRC are going to try and to repay any unused certificates of tax deposit if you don’t reply with their correspondence this balance could be forfeited and not used towards your tax liabilities after the 23rd of November.

If you think you may have a certificate of tax deposit that still has a balance remaining, but you can’t find it or you are unsure of the unused balance  you need to contact HMRC to find out if your certificate of tax deposit is valid.

How to utilise your certificate of tax deposit scheme
Until 23 November 2023, users can use their certificate of tax deposits to pay liabilities for:
  1. Income Tax (Self-Assessment)
  2. Class 4 National Insurance contributions
  3. Capital Gains Tax — not including Annual Tax on Enveloped Dwellings-related Capital Gains Tax
  4. Corporation Tax — only Series 6 certificates bought in 1993 or earlier can be used
  5. Petroleum Revenue Tax
  6. Inheritance Tax
Contact Us
If you have a Certificate of tax deposit and are unsure of the best way to utilise the  remaining balance on your certificate, please contact our Moore (South) tax team who can advice you on the best way to use this certificate.