Starting a new business? Get 40% off our accountancy services for 3 months! 😀

x

Taxable profits of limited companies and a number of other organisations are liable to pay Corporation Tax. Taxable profits which are liable to Corporation Tax include the profits from any income which is taxable, like trading or investment profits. Capital gains are also included as taxable profits, although they are known as chargeable gains for the purposes of Corporation Tax.

If the company is UK based, Corporation Tax has to be paid on all taxable profits, no matter which country they arise. If a company is based elsewhere in the world but has an operation or trades in the UK, Corporation Tax is only chargeable on the profits arising in the UK.

Payment of Corporation Tax and filing a limited company return are different to other forms of taxation, like income tax or VAT. The Corporation Tax has to be paid before the return is submitted to HMRC. The deadline for payment is before the payment for filing of the company return. It is usual to have a payment deadline of nine months after the end of the Corporation Tax accounting period. The deadline for filing the Company Tax Return is typically one year after the company’s Corporation Tax accounting period.

There are two rates of Corporation Tax comprising the lower rate, which is known as the ‘small profits’ rate, and the upper rate which is known as the main rate. The small profits rate is currently 21 percent, while the main rate of Corporation Tax is 28 percent.

About The Author

Gary Fields

Content Writer working alongside our expert accountants to bring you the latest Tax and Accounting news.

More posts by this author
guest
0 Comments
Inline Feedbacks
View all comments

Read more posts...

June 2022 Client of the Month: Manea Kella

This month we spoke to Adrian Manea, architect and director at Manea Kella, a London based RIBA Chartered architecture and interior design…

Read More

Succession Planning for Business Owners: What Comes Next?

When you own a business, it’s extremely normal to feel like you’re surviving one day to the next – ‘winging it’, as…

Read More

The Accountancy Partnership – Our Positive Reviews

Here at The Accountancy Partnership, we’re proud of our customer reviews The reviews we receive from our customers show how hard we…

Read More
Back to Blog...

Confirm Transactions

The number of monthly transactions you have entered based on your turnover seem high. A transaction is one bookkeeping entry such as a sale, purchase, payment or receipt. Are you sure this is correct?

Yes, submit my quote
No, let me change it

Please contact our sales team if you’re unsure

VAT Returns

It is unlikely you will need this service, unless you are voluntarily registered for VAT.

Are you sure this is correct?

Yes, the business is VAT registered
No, let me change it

Call us on 020 3355 4047 if you’re not sure.

Bookkeeping

You only need this service if you want us to complete the bookkeeping on your behalf.

Would you prefer to complete your own bookkeeping?

Yes
No

Call us on 020 3355 4047 if you’re not sure.