Your accounting period for Corporation Tax is the time covered by Company Tax Return. The period is limited to 12 months and is normally the same as the financial year covered by your company or associations annual accounts.
Your first accounting period
After you have registered your company for corporation tax, you will receive a letter from the HMRC stating your accounting period.
When to pay your corporation tax?
The deadlines to pay your corporation tax can depend on your taxable profits
For companies with taxable profits up to £1.5 million, you must pay your Corporation Tax 9 months and a day after the end of your accounting period.
For companies with taxable profit exceeding £1.5 million, you must pay your Corporation Tax in set instalments.
If you miss your corporation tax payment deadline the HMRC may charge you interest. The HMRC will pay you interest if you pay early.
How to pay your corporation tax
Same day or next day:
- Online or telephone banking
3 Working Days:
- Direct debit (If already set up)
- Online by debit or corporate credit card
- At your bank or building society
There are a number of income tax friendly investment schemes that are sanctioned by the government- the EIS, seed EIS and VCT schemes to name a few. However, this is lesser the case for corporate investors. The fewer opportunities for companies to minimise tax through investment is likely to be part of the reason why corporation tax rates are more generous that income tax rates.
If you’re a business owner looking to reward one of your employees for long service there are a number of tax incentives and obligations you must consider.
We have worked with both start-ups and established businesses in the creative industry for over 10 years. Our wealth of knowledge in creative industry business tax allows start ups to access all of the exclusive tax breaks they are entitled to, that will enable them comfortably make it through their first year.
With the tax deadline having just past, we have had many tax-filers contacting us with penalty notifications for failing to file on time.
There are however some instances where the HMRC will give lenience.
What is a reasonable excuse?
As a self-employed worker using your home as a workplace, the work-related expenses incurred through using your work as a home are tax deductible.
Fraudsters are targeting UK taxpayers with phishing and scam emails from the HMRC.
Last month, the HMRC published guidance on the new tax rules for individuals who are non-UK domiciled and offshore trusts, which take effect from 6th April 2017.
Over 746,000 people missed the UK tax deadline to file their self-assessment tax return, risking a fine of £100 or more.
This is a guide for those who run a partnership PLC business. Please not the rules will vary for LLC’s and other business structures.