What is Corporation Tax?
Corporation Tax is the tax that needs to be paid depending on the income made during a tax year by LTD businesses, as well as other organisations such as clubs, societies, associations etc.
What does Corporation Tax involve?
If you set up a company or any other organisation with commercial activities you must register for Corporation Tax.
Therefore, you need to go through the following steps in order to operate within the law:
- inform HMRC that your organisation/company is conducting commercial activities and it is necessary that it is registered for Corporation Tax;
- pay the taxes related to the profit of the organisation/company during the tax year;
- fill in and send the Company Tax Return declaration.
For each of the above duties there is a deadline until which they can be sent to HMRC. If you miss the deadline and do not inform HMRC on time you will be liable for future fines.
What profits are taxed?
-profits gained from commercial activities or other investments (with the exception of dividend income, which is taxed differently)
-capital gains from taxable earnings (selling mobile or imobile goods of the company, compensation received for damage to the company, selling of shares, intellectual property rights etc.)
If your organisation/company is registered in the UK, you are obliged to pay Corporation Tax for the accumulated profit, regardless if it resulted from the business activities or workstations you own in other countries.
If your organisation/company is not registered in Great Britain but conducts commercial activities through a headquarters or branch registered as a workstation with HMRC, you will have to pay Corporation Tax just for the profit accumulated for the activities in the UK.
What is the legal period to pay corporation tax?
-you have 9 months and 1 day after the tax period finished to pay
-tax declaration must be filled in and sent within 12 months from the end of the tax period (Corporation Tax accounting period)
Important! Corporation Tax is paid before filling in and sending the Company Tax Return declaration
For example: If the tax year for your company starts on the 1st of April 2012 and ends on the 31st of March 2013 and the tax period is the same, you will have to:
-pay Corporation Tax for that period before 1st of January 2014
-fill in and send the Company Tax Return declaration before 31st of March 2014
PAY JUST THE NECESSARY AMOUNT OF CORPORATION TAX!
Our objective is to ensure you pay the right amount of Corporation Tax. We have specialists who are up to date with the company tax legislation, able to offer an effective service at the most advantageous prices. By requesting services from EuroWin Solutions you have the certainty that your tax is calculated correctly.