Corporation TAX

Our job to make sure that you achieve the best corpotation tax treatment as well as reducing your tax on disposals and maximising relief on acquisitions. 

 

Corporate tax in UK

Corporation tax is a major part of your trading costs. It is the increased reporting obligations, thorough investigation policies imposed by the HMRC. It tough penalties for non-compliance tax filing. It means that a lot of time and resource is taken up collecting revenue for the Government.

We have specialist staff to deal with all types of Taxation Services including preparation and submission of annual income tax returns on our client’s behalf. We also deal with all correspondence from the HM Revenue & Customs providing the client with peace of mind.

 

What are Corporation Tax rate?

Corporation tax rate for company profits is 19 per cent. This is now a standardised rate for all businesses. In 2016-17, the Tax rate was 20 per cent. Prior to April 2016, the rate depended on how much profit your company made.

The current government has committed to keeping the Tax rate at low levels. It has announced that corporation tax UK will higher to 25 per cent in the 2025-26 tax year, if the large business.

 

When is corporation tax due to HMRC?

This is tricky, because the corporation tax HMRC filing deadline differs from tax company. You need to pay UK tax before you file your company tax return. The date you need to pay it depends on your company’s tax accounting period (the accounting period will end on 31 March for most companies).

The deadline to pay your  tax bill is nine months and one day after the end of your accounting period for your previous financial year. So if your accounting period ends on 31 March, your corporation tax deadline is 1 January.

But you need to prepare your company tax return to work, use pay calculator and out how much tax to pay. The deadline to file HMRC corporation tax within 12 months after the end of the accounting period it covers.

If you have just started your small business. You may have two tax accounting periods due to the fact that your accounting period can not longer than 12 months.

Businesses with more than £1.5 million in profits will need to pay tax in instalments. The process is different.  Even if your company is loss-making and you have no corporation tax due, you still need to declare that with HMRC.

 

Tax Deductions and Allowances

Companies eligible for various tax deductions, allowances, and tax credits. Which can reduce their overall tax liability. It is include deductions for business expenses, capital allowances for investments in assets, and research and development tax credits.

International Taxation

Multinational corporations may face additional complexities in dealing with corporation tax. They may have to navigate tax rules in different countries where they operate.

Taxation of Dividends

In some countries, there may be additional taxes on dividends paid to shareholders, known as dividend taxes. This is different from corporation tax. Which is applied to the company’s profits before distribution to shareholders.

It is important to note that corporation tax laws and regulations. It can vary significantly tax rate change from year to year. UK has its own tax code governing corporation tax, and these laws may change over time. Therefore, businesses operating in multiple jurisdictions or seeking to understand corporation tax rules. It should seek advice from tax accountant with expertise in the relevant jurisdictions.