Corporation Tax Services
From expert accountants based in London
If you have a company registered in the UK, you are subject to corporation tax. As you owe this to HMRC, you are legally obliged to file your CT600.
This process can be extremely stressful due to the complexities that come with the ever-changing tax rules. We have a very streamlined approach and will work with you to make sure this process is as pleasant as possible. This will also ensure that you do not pay any more tax than is due.
FAQ about corporate taxes
Company Tax Return is financial information that is required by each company to file with HMRC every year. This information consists of the company’s revenue, losses, loans and any other factors which may be relevant to the tax liability; which is then used to compute company’s corporation tax liability.
Corporation tax is a tax levied on your adjusted trading profits at the end of your company’s financial year.
CT600 is a form used for your company’s tax return, which helps adjust your trading profits to taxable profits.
Profits are adjusted, as various disallowable expenses need to be added back to your trading profits. If you had bought any qualifying assets, these usually help in reducing the amount of Tax you pay.
Once the adjusted profits have been finalized, corporation tax is calculated.
In a company where you are the registered director; it is your assumed responsibility to ensure the company’s tax returns are submitted and paid every year before the deadline.
Even though you are responsible for the submission and payment of your company’s tax liabilities (CT600), it does not mean that you have to prepare them personally as it is understandable that you as a director may not have the relevant knowledge to carry out such a task.
Therefore, you are able to delegate this over to your trusted Accountants. We here at Evotax have experts in corporation tax who will be delighted to do this for you extremely efficiently. This will not only save you time and money but also ensure it’s done by experts with years of experience.
Companies registered in the UK are required to file their Corporation tax return by the relevant anniversary of the date they were first registered or incorporated on the company’s house (Accounting reference date).
Therefore, if a company is registered on 30 June 2020, you should ensure that the corporation tax return has been filed by 30 June 2021.
Corporation tax is due 9 months after your financial year has ended.
If your financial year-end was March 31st, your Tax wouldn’t be due till Jan 01.
Once your adjusted profits have been finalized, the current corporation tax rate is applied to it at 19%.
The chancellor announced in March 2021 that the Corporation Tax would increase by 25% from April 2023.
Companies with profits between £50k & £250k will be taxed under a new taper relief system. This means that if your company’s profits are £50k or less, you will be taxed under the current tax system at the rate of 19%.
The chancellor confirmed that only 10% of companies would actually pay more tax under the new rules, and approx. 70% of companies will remain in the current 19% tax rate.
After your corporation tax computation has been completed and CT600 has been finalized, we will inform you of the amount of Tax that you are due to pay.
Your corporation tax will be due 9 months from the day of your financial year-end. Again, we will specify the exact date for you.
There are various methods you can pay your Corporation tax. However, the quickest way to pay would be via online banking. These methods will be outlined on the payslip you would have received from HMRC, along with bank details if you wish to pay via online banking.
Along with payment details on the payslip, there will also be a 17-character Corporation tax reference which you need to ensure you insert.
Just like there is a deadline to pay your Corporation tax within 9 months after the accounting period. Your companies Tax return is due 12 months after the end of the accounting period.
There are penalties if the tax return is delayed.
|Time after your deadline||Penalty|
|3 months||Another £100|
|6 months||HM Revenue and Customs (HMRC) will estimate your Corporation Tax bill and add a penalty of 10% the unpaid Tax|
|12 months||Another 10% of any unpaid tax|
It is a legal requirement that your corporation tax records must be recorded for a minimum of 6 years. However, it is sensible to have your records saved up for a lot longer.
As it is acceptable by HMRC to have your records saved up online, having your tax records saved up for longer than 6 years shouldn’t be a hassle.
To start with, our experts will ensure we get all the necessary information that is required from you to get the process started.
After our senior accountants have adjusted your trading profits, we will get back in touch with you to explain what work has been done so far and what tax reliefs have been claimed.
If you are happy with the results, we will send you the adjusted accounts for a final signature.
Once in receipt, we will submit them electronically to HMRC.