Judy Herdman, Finance Manager,
Cressex Community School
Corporation Tax
Corporation Tax is paid by Limited Companies on their profits and it is also paid by:
- Members' Clubs, Societies and Associations
- Trade Associations
- Housing Associations
- Groups of individuals carrying on a business but not as a Partnership, e.g.
Co-operatives, even if they are not Limited Companies.
Corporation Tax is paid (2011-2012 rates) at the small profits rate of 20% for profits of up to £300,000 and a main rate of 26% for profits of over £1.5 million. Companies making profits between £300,001 and £1.5 million receive marginal relief, which eases the transition between the lower and higher rates.
If your Company is liable to pay Corporation Tax, you must:
- Tell HM Revenue & Customs (HMRC) that your company exists and that it is liable
for tax. - File a self-assessment tax return for your company, on which you calculate your own corporation tax liability and pay it without prior assessment by HMRC.
- Keep records of all company expenditure and income in order to work out your tax liability accurately.
Importantly, if your company is liable for Corporation Tax, you must calculate how much profit your Company makes for each accounting period and how much Corporation Tax is payable on those profits. This information must be reported to HMRC on a Corporation Tax Return form and accounts and tax computations must be submitted to HMRC in support of the Return.
There are strict penalties for filing late Returns and interest is charged on tax paid late, so it is important that the deadlines, which are determined by your Company’s annual accounting date, are adhered to.
The dedicated and qualified team of Tax Professionals at The Fish Partnership provides a complete service to deal with ongoing and annual Corporation Tax matters including:
- Preparation of the tax provision for the financial statements
- Corporation Tax computations and returns
- Dealing with correspondence from HMRC
- Advising on amounts and timing of payments
In addition to this, we provide a Tax Planning and advisory service and work with you to minimise Corporation Tax liabilities and plan for the future.
With business tax complexities often consuming a large amount of management time and effort, we will work with you to help you incorporate tax efficiency into your business planning and decision-making in order to put you in control of tax costs and generate genuine long term tax savings.
We realise that managing your Tax Compliance burden efficiently can have a significant impact on your business. Whether you outsource your business tax processes to us completely or simply need advice to help you streamline the paperwork and deal with specific issues, we can deliver the quick, efficient service you need.
When the tax issues seem complex you will find our business tax advice and solutions relevant, practical and cost-efficient.
