Corporation Tax – CT
Corporation tax (CT) is due on profits made by a Limited company. Every Limited company based in the UK is liable to corporation tax.
These profits are required to be returned to the H M Revenue and Customs (HMRC) on form CT600s, corporation tax returns. A corporation tax computations based on the annual accounts need to be returned as well.
A Limited Company may be liable to penalties and interest on late submission
of the form CT600s, corporation tax returns. A penalty is also due upon a late payment of corporation tax.
We can assist you with the preparation of the annual accounts, corporation tax computation and the preparation of corporation tax returns. As your tax advisers we ensure that all your entitlements to allowable expenses and claims are accounted for with the view to reducing your corporation tax liability.
When you set up a new company, you must tell HM Revenue & Customs (HMRC) if it’s liable for Corporation Tax. You must pay any Corporation Tax due and file Company Corporation Tax Returns on time.
You also need to take action if your previously dormant limited company becomes active again.
The Inland Revenue’s Corporation Tax requirements are separate to what your company needs to do for Companies House. A limited company comes into existence when it is incorporated and registered at Companies House. Limited companies must file certain documents with Companies House when they are first set up and on an on-going basis. These Companies House requirements are different from what your company needs to do for HMRC for Corporation Tax Returns purposes.
The Companies House notifies the HMRC when any limited company is formed and registered with them. HMRC uses the records from Companies House to set up a reference number known as a Unique Taxpayer Reference (UTR). They then send form CT41G (Corporation Tax – Information for New Companies) to your company’s registered office. This form will include your company’s UTR so please keep it safe as you will need it to contact HMRC. It also informs you what you need to do if your company has become active. It advises you on other tax implications for consideration for your newly formed company. For example, your responsibility on the filing of corporation tax return, due dates for the fling CT return and rates for liability to corporation tax.
It is important that you read the form CT41G (Corporation Tax – Information for New Companies) carefully and take any necessary action that may be required.
As your tax advisors and accountants, we can look after the above to minimize the administration impact on your business.
Our Corporation tax service can be provided as an individual service. It may also be combined with other tax and accountancy related services as part of an annual package that we can offer as your appointed Accountants and Tax Advisers.
