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 that means that a lot of time and resource is taken up collecting revenue for the Government.
Our job to make sure that you achieve the best capital or revenue tax treatment as well as reducing your tax on disposals and maximising relief on acquisitions.
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 rates?
The 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 will fall to 17 per cent in the 2020-21 tax year.
When is Tax due?
This is tricky, because the Corporation Tax filing deadline differs from other taxes. You need to pay before you file your company tax return and the date you need to pay it depends on your company’s Corporation 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 out how much tax to pay, and the deadline to file your company tax return is 12 months after the end of the accounting period it covers.
If you’ve just started your small business, you may have two tax accounting periods due to the fact that your accounting period can’t be longer than 12 months.
Businesses with more than £1.5 million in profits will need to pay their Tax in instalments, so the process is different. And, even if your company is loss-making and you have no Corporation Tax due, you still need to declare that with HMRC.