Corporation Tax

Corporation tax is charged on your annual profits if you are set up as a limited company. Certain other organisations including clubs, societies , charities and other unincorporated bodies may also be liable to corporation tax.

All businesses receive relief for their business expenditure against their profits chargeable to corporation tax, but businesses that make use of new technologies, engage in research projects and carry out regeneration works receive the tax breaks.

There are two rates of corporation tax and these apply according to the level of profits made by the company.  Those companies that have profits that fall between the two thresholds will pay a marginal relief rate to make the transition from one rate to the other easier.  

For each year, a company is required to complete a corporation tax return (Form CT600).  From the 1st April 2011, all returns must be filed online and must be received by HM Revenue and Customs (HMRC) within 12 months of the company year end and payment must be made to HMRC with 9 months and 1 day.

Though dealing with Corporation tax is the ultimately the company directors’ responsibility, we can help in ensuring that the liability is accurate as penalties for incorrect and late returns can be severe.

Our team handles issues ranging from routine annual compliance, to specialist advice that will help plan and support your business strategies (See Corporation tax planning).

We provide a full compliance service and can help provide a tax efficient approach to every aspect of business.  Though tax compliance has become an increasingly complex issue with constantly changing assurance, regulatory and tax compliance requirements, by working together we help take the complexity out of compliance to ensure that your tax exposure is managed and minimised.

Some of the services we provide:
•    Agreeing returns and tax liabilities with HMRC
•    Corporate tax e-filing; mandatory for businesses from April 2011 (iXBRL link)
•    Professionally managing communications with HMRC
•    Experienced tax team quickly resolves HMRC enquiries
•    Advice on specialist areas (e.g. research and development tax credits)

For your ease we have listed below related articles on this topic.  Where applicable there is also a list of useful links on the left hand side.

If you would like to speak to someone please do not hesitate to contact us.

Plummer Parsons