Every limited company that is based in the United Kingdom is subject to corporation tax on their profits.
Once a company has been incorporated, it is essential that HM Revenue & Customs are informed that the company is trading and will be chargeable to corporation tax (i.e. not dormant). As HMRC registered Agents, we can do this online on behalf of our clients.
Once a company’s accounts have been prepared, we will prepare corporation tax returns ‘Form CT600’ on behalf of clients. We can also provide advice on any tax planning areas that may benefit directors and the company.
The current small profits rate of corporation tax is 20% (profits under £300,000). The main rate of corporation tax is 23%; however the government have announced that the small profits rate will be unified with the main rate, so from 1 April 2015 there will be only one corporation tax rate set at 20%.
Corporation tax is payable to HMRC by a company 9 months and 1 day after the accounting year end. The corporation tax return filing deadline is 12 months after the accounting year end (so the tax is payable before you have to submit your corporation tax return).
There are fines and penalties for late payment of tax and submission of Form CT600, so it is essential that these are dealt with by a professional.
We can also advise and provide further guidance on areas such as capital allowances, research and development claims and the recent ‘patent box’ legislation.