What is Corporation Tax?

Corporation Tax
Corporation Tax is a tax on business profits. Limited companies (and some organisations such as clubs and community groups) have to pay Corporation Tax to HMRC every year. Your Company Tax return tells you how much Corporation Tax you need to pay.

When you set up as a Limited Company you need to register with Companies House. After that – and within three months of starting to trade – you need to register for Corporation Tax with HMRC.

Corporation Tax is calculated on a Company’s Tax Return, and Company Tax Returns must be filed within 12 months of the accounting year-end. However, as Corporation Tax must be paid before 9 months and 1 day after the accounting year-end, Tax Returns should ideally be submitted before they are due!

If you are already using Numberworx we can complete your Company Tax Return and let you know how much Corporation Tax you owe HMRC. Your bookkeeper will also be able to advise you on how you could reduce your Corporation Tax liability

What is the ‘accounting year’?

The ‘accounting year’ is the 12-month period covered by your business accounts (not necessarily the tax year). Companies House sets your accounting year when you register, although you can change this date if you wish.

Need help with Corporation Tax?

We’re happy to answer any questions you have regarding Corporation Tax or Company Tax Returns. We will always do our best to help.