corporate tax returns

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CORPORATE TAX RETURNS

Corporate Tax Returns in London
CORPORATE TAX RETURNS

PTA - Your Corporate Tax Accountants in London 

corporate tax return

 1

What is Corporate Tax 

In the UK, all companies are required to pay their tax, known as Corporation Tax or Corporate Tax, on their income and assets. A company tax return (CTR) must be made on a yearly basis, with an optional quarterly or monthly payment option. Corporations and limited companies in the United Kingdom are required to pay their taxes to the United Kingdom government through the Corporate tax System against their net profit. For the financial year 2021 - 2022, it is expected to remain the same as now i.e. 19%. However, from 2023, it is expected to increase to 25%. 

 

The Corporate Tax Return form is required by the United Kingdom as an application to file corporate tax returns. You must obtain a company tax return form from your local Revenue Department to complete if you like to send tax returns manually. You can also send your corporate tax returns to HMRC using their online service. You have to submit your Company Tax Return for each financial year. When the time comes for your Corporate Tax Return to be processed, your Corporate Tax Return is sent directly to the Revenue Department.

The Corporation Tax Return is used to calculate your tax liability and to report the amount of tax you have to pay. The corporation tax return calculates your profit and losses. It reports the payable tax on income and capital. It also reports all the payments made by you to the Revenue. The Corporation Tax Return is a detailed document and is the only way to see the amount of corporation tax you owe, as well as the amount that you would owe if you didn't file the Corporation Tax Return.

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How To Send Corporate Tax Returns 

You are required to pay your corporate tax nine months and one day after the end of your accounting period. The posting period is usually your fiscal year, but you can have two posting periods in the year you founded your business. This applies if your taxable profit is £1.5 million or less. If it is above £1.5 million, then you must pay your tax in installments.

 

However, above £20 million of taxable profit, a different set of rules applies.

 

If you can demonstrate that you could not afford the amount you owe, then you may be able to negotiate a lower tax liability and still file the Corporation Tax Return. If you are an unrepresented company, then you should send your Company Tax Return to HMRC and accounts to Companies House at simultaneously.  

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You can pay your corporate tax by:

  • Online or telephone banking

  • CHAPS

  • Bacs

  • Debit card          

  • Credit card (1.5% charge)            

  • Existing Direct Debit       

  • New Direct Debit            

  • At your bank or building society

Before sending your tax returns online, you should prepare your company’s annual accounts. They must be ‘balanced’, meaning your total assets should match what you owe. You will also need you’re Government Gateway user ID and password as well as the Companies House password and authentication code (only if you are filing your accounts with Companies House simultaneously).

The deadline for corporate tax returns is 12 months after the end of the accounting period it covers.

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For those who have been a resident of the United Kingdom for six months or more, and who do not live in an EU member state, they are eligible to apply for a Company Tax Reduction Certificate. However, there are strict eligibility requirements and a person who applies for a Company Tax Reduction Certificate will not automatically receive it.

Business owners may be eligible to take the annual Self-Assessment tax relief course. A professional accountant will be able to guide you through this process, and can also provide advice on how to prepare your Company Tax Return. The purpose of this course is to help business owners to understand the process of taking their annual Company Tax Return and how it relates to their particular circumstances.

Another way that a company can reduce its tax liability is by taking advantage of an Individual Savings Account. This is available to almost anyone and is an ideal way for business owners to save money in an easy and affordable manner. An Individual Savings Account will allow a business owner to take out a loan from a bank account and pay off a portion of their income tax.

There is also the option of making 'contribution' tax relief claims, where the amount paid towards a certain expenses, such as the cost of taking out holiday insurance or travel insurance for example, is deducted from the amount paid in company tax.

Corporation Tax Returns

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Some Important Facts about Corporate Tax

All individual income tax returns must be filed, along with corporation tax returns. There are many different types of personal tax returns, such as: self-assessment and employee forms of return; married couples and individuals; individuals with no dependents and children; pensioners; self-employed people; and tenants and landlords. All personal returns will be very detailed and must be verified by a professional tax professional.

Corporate Tax

Corporate Tax Returns

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How can We Help You

Preparing papers for company's tax returns, can be a complicated and time consuming process. Moreover you also need to be sure about what information about your company's accounts, finances and assets should be added and what should not be.

Pro Tax Accountant has a team of professional accountants, well trained to handle your company's taxes. They know it very well how to put everything in order and to safeguard your company's interest. You may be able to get claim certain tax exemptions but may not be aware of this opportunity.  But we will. 

We make sure that our client gets maximum benefit of the law and that the returns are sent within the time limit. Just fill out our online quotation request form and we will get back to with a working plan, customized for you. 

company tax return uk

COMPANY TAX Accountants

Frequently Asked Questions Regarding Corporate Tax in the UK

What is the UK Corporate Tax Rate?


The UK corporate tax rate changes every year, but the current corporate tax rate is 19%. In very simple terms, if a company's taxable profit is £ 20,000, corporate income tax would be £ 3,800 based on a 19% tax rate.




How to Register for Corporate Tax?


If you want to pay corporate tax, you will need to register for corporation tax. You can do this through HMRC on the Gov.UK website. The details you will be asked to fill out include:

  • Company Name
  • Registration number
  • Your business start date (the start date of your company's billing cycle)
  • The main address
  • Business type
  • Name and address of the directors

You must do this within 3 months of starting trading. It is the business manager's duty to complete and file the company's tax return and then pay the invoice. You can hire an accountant to do this on your behalf.




Do Charities Pay Corporation Tax?


Charities are generally exempt from paying corporate income tax but they may be required to complete and submit corporate income tax returns if they are involved in any taxable income or gain not covered by an exemption or exemption.




What Happens if a Company Cannot Pay Corporation Tax?


You need to be proactive and contact HMRC and ask for a payment deadline if you want to continue the business. If your company can't afford to pay its corporate tax, HMRC will send a bailiff to your premises to seize company assets to be auctioned off to pay your corporate tax bill. If the debt is high enough, exceeding £ 750 or more, they can service a legal debt which is the first step in winding up your business. This is known as forced liquidation.




When Does Corporation Tax Need to be Paid?


You must pay corporate tax before filing your corporate tax return

the payment period is nine months and one day after the end of your accounting period for your previous financial year - if your accounting period ends on March 31, your corporation tax period is January 1.




Do I Have to Pay Corporation Tax if I Close My Company?


A closed company does not have to pay corporation tax while it is closed. As long as no money is withdrawn from the company and no shares are sold during their dormant period, there are no dividends, income, or capital gains taxes.




What is The Difference Between Corporate Tax and Income Tax?


Corporate tax is the tax that UK companies pay on their taxable profits that represents a country’s main source of income, whereas while income tax is a type of tax levied by the state on a person's income, such as wages and salaries.




What Is Meant by Corporate Tax?


Corporate tax is the tax that UK companies pay on their taxable profits. It is collected from the companies on their net income obtained from their business activities. Corporation tax is paid by UK limited companies and some other organizations. It is based on the annual profits that a company makes. Corporation tax specifically applies to the following limited company:

  • Trading profits
  • Investments
  • Selling assets such as land, property, shares