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Corporation Tax

What is Corporation Tax and who is subject to Corporation Tax requirements?


Again, please let your friendly accountants in Manchester explain:-

 

Corporation Tax is a tax on the taxable profits of limited companies and some organisations including clubs, societies, associations, co-operatives, charities and other unincorporated bodies.


Taxable profits for Corporation Tax include:


  • profits from taxable income such as trading profits and investment profits (except dividend
  • income which is taxed differently)

  • capital gains - known as 'chargeable gains' for Corporation Tax purposes

  • If your company or organisation is based in the UK, you'll have to pay Corporation Tax on all

  • your taxable profits - wherever in the world those profits come from.


If your company isn't based in the UK but operates in the UK - for example through an office or branch (known to HMRC as a 'permanent establishment') - you'll only have to pay Corporation Tax on any taxable profits arising from your UK activities.

 

So, you may ask Blondie’s accountants - What you need to do for Corporation Tax and when you need to do it


As your local Manchester accountants we will take good care of this for you and all within our Fixed Price terms.


If your company organisation is subject to Corporation Tax requirements you:


  • tell   HMRC that it's liable for Corporation Tax

  • pay   the right amount of Corporation Tax on time

  • file   a Company Tax Return and supporting documents


There are different deadlines for each of these requirements. If you don't meet those deadlines, your company or organisation may be charged interest and/or penalties.


Pay before you file

Unlike other taxes such as Income Tax or VAT - where in most cases the filing and payment deadlines are identical - this is not the case with Corporation Tax. The deadline to pay your Corporation Tax is before the deadline to file your Company Tax Return. Generally you must:

  • pay by 9 months   after the end of your company or organisation's Corporation Tax accounting

  • period

  • file by 12 months   after the end of your company or organisation's Corporation Tax

  • accounting period.


  • For example, if your company or organisation's financial year runs from 1 April 2008 to 31 March 2009, and your Corporation Tax accounting period is the same, you must:


  • pay your Corporation Tax for that period by 1 January 2010

  • file your Company Tax Return for that period by 1 April 2010


If your company's profits for an accounting period are at an annual rate of more than £1.5 million, you must normally pay your Corporation Tax for that period in instalments, all of which are due before  the deadline to file your Company Tax Return.

 

Years to 31.3.11 and 31.3.10

 

Profits band
£

Rate
%

Small companies rate

0 - 300,000

21*

Marginal (small companies) rate

300,001 - 1,500,000

29.75*

Full rate

Over 1,500,000

28*

Small companies fraction

 

7/400*

 

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