One of the first things a small business should do when starting up is to register for corporate tax, which you can online at HMRC website. This must be done within three months of the initiation of the transaction. Getting registered on time is important because if you register late, you could face a penalty. So you need to register for corporate tax as soon as you start your company.
The British private limited companies are required to pay corporate tax on their profits, known as “Corporate Tax”. Corporate tax is very similar to the company’s income tax, but the difference is that companies do not have a personal allowance. So as soon as your company starts to make a profit, you will have to start paying corporate tax at the corporate tax rate.
A company must pay corporate tax on the profit it earns from doing business (“ corporate profits ”), its investments, and the sale of assets for more than they cost (“ corporate profits ”) that can be attributed ” – Include Company Assets land and property, equipment and machinery and company shares).
Paying corporate taxation on time can be complicated complicated, as the deadline for filing corporate tax is different from other taxes. You must pay corporate tax before filing your tax return, and the date you must pay it depends on your company’s corporate tax accounting period (the accounting period ends March 31 for most companies).
The deadline for paying your corporate tax bill is nine months and one day after the end of the previous tax year, so if your tax year ends on March 31, the corporate tax deadline is January 1.However, you must prepare your tax return to determine the amount of the corporate tax due, and months after the end of the accounting period, you have to file the tax return within 12 months .
As of April 1, 2015, a fixed corporate tax rate applies to offline income. To calculate earnings before April 1, 2015, use the margin reduction calculator to calculate how much margin you can claim on your corporate tax.
In the 2015 summer budget, the government announced legislation that sets the corporate income tax rate (for all benefits, except circular benefits) at 19% for years beginning April 1, 2017 and 2019 and by 18% in the year beginning April 1, 2020. On April 1, 2016, the 2020 budget announced a further reduction to 17%.
In the 2020 budget, the government announced that the corporate tax rate for all years from April 1, 2020 and 2021 would remain at 19%.
At Total Tax Accountants, you have the expertise of professional tax advisors, specializing in corporate taxation. You are a new company an an established organization, we have customized solutions to your specific needs.
From getting your company registered for corporate tax to making the actual tax returns, we offer you a complete set of services. So contact us today to get a free quote from us.
We at Total Tax Accountants has invested great deal in our sophisticated accounting software and process all your bookkeeping through authorized and approved HMRC digital accounting software providers. With such sophisticated and advanced accounting systems in place we can confidently tell you that all your taxation process is in safe hands with us.