Limited Company - Inland Revenue (HMRC)

Corporation Tax is the tax due on company profits.

Corporation Tax is the tax due on company profits. Once the accounting profit is worked out for a company, it is then turned into the taxable profit by adding back certain expenses that are not tax deductible and taking out certain capital allowances that act as tax reliefs and reduce the company’s tax bill. This is a quite a complex process as there are literally thousands or rules regarding what you can and can not claim as tax deductible.

Corporation Tax Registration

A limited company has to register for Corporation Tax with HMRC. You must fill out the appropriate form and file it with you local tax office. The CMJ Accountancy service includes Corporation Tax registration.

Corporation Tax Rates

Corporation Tax is currently 20% for small companies.

Corporation Tax Responsibilities

A limited company must submit a Corporation Tax return each year. This is due 12 months after its company’s year end. So if the first company year end is 31 May 2014 then it will be due before 31 May 2015.

You also have to pay your Corporation Tax. This is due within 9 months and 1 day of the company year end. Using the example above you would need to pay this by 1 March 2015.

Corporation Tax is very important; there are a number of fines and penalties if you make any mistakes.

The C M J Accountancy service includes the working out of your company’s taxable profit and the preparation and submission of your Corporation Tax Return and all supporting computations. We advise you exactly when to pay your Corporation Tax and how to pay it.

For further help, or to enquire about joining our services, please call us on 0845 834 0264 or drop us an email at info@cmjaccountancy.co.uk.

Disclaimer

This information is for general information only. We take no responsibility for any action taken or refrained from in consequence of its contents. Always seek our professional advice specific to your circumstances before acting.