Corporation Tax is due to be paid by limited companies and a number of other organisations. There are a number of regulations which have to be adhered to, in order to comply with HM Revenue & Customs. It isn’t a matter of only paying the correct amount of tax each year in a timely manner, but also keeping to the relevant deadlines and fulfilling HMRC requirements.

There are a number of limited companies and unincorporated organisations which are subject to the requirements of Corporation Tax. Limited companies which are either UK based or are based elsewhere in the world but trade in the UK are subject to Corporation Tax. However, if a company is based overseas, they only pay tax on UK income. Clubs which have members are also subject to Corporation Tax, including social clubs, holiday clubs and sports clubs. Friendly societies or provident societies are also charged Corporation Tax.

Charities and associations, like housing associations are charged Corporation Tax, in addition to groups of individuals in business, although not in a partnership. The taxable profits of any of these organisations or limited companies will be charged Corporation Tax on taxable profits or gains.

There are a number of organisations and businesses which aren’t subject to the requirements of Corporation Tax, including health service bodies, sole traders, traditional partnerships and limited liability partnerships. There are more exclusions from Corporation Tax, although they may have to pay other tax. Corporation Tax is a complex subject, and as such it is advisable to seek professional guidance.

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