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Corporation tax is paid when doing business as: a limited company, any foreign company with a UK branch/office, clubs, co-operative or other unincorporated association such as a community group or sport club.
Sole traders and partnerships pay Capital Gains Tax as well as Income Tax on their business profits meaning that they don’t need to pay Corporation Tax. Since you don’t receive a bill for Corporation Tax you must work out, pay and report your tax manually.
You must register for corporation Tax when you start doing business or if you restart a dormant business. Unincorporated associations must write to HMRC. You should also keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax you need to pay.
You will have to pay Corporation Tax or report if you have nothing to pay by your deadline (usually 9 months and 1 day after the end of your accounting period).
Make sure to also file your Company Tax Return by the deadline which is usually 12 months after the end of your accounting period.
Your company will need to pay Corporation Tax on the money made from: doing business/trading profits, investments and selling assets for more than they cost. If your company is based in the UK it pays Corporation Tax on all of its profits from the UK and abroad. If your company isn’t based in the UK but has an office or branch in the UK, it only pays Corporation Tax on profits from its UK activities.
Get in touch! Start your tax return today by contacting us via our online contact form below or give us a call on 01670 897407 or email [email protected] to speak to one of our friendly experts.
