Corporation Tax
Details of your Company have to be registered with Companies House. As a private limited company directors have to:
- Complete an annual return to Companies House and
- submitting a signed set of accounts to Companies House each year.
Once your Company is registered with Companies House you must tell HMRC that your Company may be liable to Corporation Tax (CT). CT is tax due on taxable profits of limited companies and certain other organisations. Taxable profits are generally calculated by deducting all business expenses, such as salaries, Employer’s National Insurance Contributions, travel expenses etc from the turnover.
The rate of CT depends upon the level of taxable profits. For Companies with profits up to £300,000 this attracts the “small profits rate” 20% with effect from 1 April 2011. Companies with taxable profits in excess of this limit are taxed at the main rate of CT 24% with effect from 1 April 2012 (23% with effect from 1 April 2013).
For CT purposes the tax year is the financial or fiscal year running from 1 April to 31 March (as opposed to the tax year for individuals that runs from 6 April to 5 April each year). A Company Tax Return (form CT600) must be filed by the you as the director for each Corporation Tax accounting period. When filing the CT600 you must also submit a set of accounts to HMRC.
Corporation Tax due is normally due nine months and one day after the end of the accounting period. See Important Dates for more details.
Interest and penalties will be charged for late filing and late payments.
With effect from 1 April 2011 companies and organisations will have to submit CT Returns online and pay all CT and related payments electronically. Related payments include interest charged on overdue CT and penalties for not filing Company Tax Returns on time.
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