Corporation Tax

Key areas we advice on includes

If you are a Limited company, you may have to be registered for corporation tax. We can assist with the preparation of company tax returns and tax computations, and priority will be given on providing advice on any tax planning areas that may benefit you and your Company.

You must pay Corporation Tax on profits from doing business as:
● a limited company
● any foreign company with a UK branch or office

I. Corporation tax on chargeable gains

If you sell or dispose of a business asset, you’ll need to pay corporation tax on any profits (or chargeable gains).

When working out your chargeable gain, we can use Indexation allowance to reflect the increase in the value of the asset between the time it was acquired and 31 December 2017. From 1 January 2018 Indexation Allowance is frozen. Where assets acquired before 1 January 2018 are disposed of on or after that date; the Indexation Allowance will be calculated using the Retail Prices Index or factor for December 2017, irrespective of the date of disposal of the asset.

II. Deadlines

Corporation Tax Returns must be filed with HM Revenue & Customs within 12 months of the year-end, and you must pay your Corporation Tax nine months and one day after the end of your accounting period. Your accounting period is usually your financial year, but you may have two accounting periods in the year you set up your Company.
From 1 April 2015, there is a single Corporation Tax rate for non-ring fence profits.
You must pay your Corporation tax in instalments if taxable profits of more than £1.5 million.

III. Penalties for late filing

You will have to pay penalties if you do not file your Company Tax Return by the deadline.

Time after your deadline Penalty
One day	£100
Three months	Another £100
Six months	HMRC will estimate your corporation tax bill and add a penalty of 10%the unpaid tax.
Twelve months	Another 10% of any unpaid tax.

IV. Our Fees

Our fees are included within the limited company service package.