Corporation Tax

Corporation tax is paid by businesses in the UK, and is calculated on their annual profits, in a similar way to self assessment tax for individuals. Unlike individuals, companies don’t receive any kind of tax-free allowance, and therefore all profits are taxable. However, there are a number of expenses and deductions that can be claimed to reduce your bill.

If you are operating as a limited company you will need to calculate the taxable profits on each accounting period, and then calculate corporation tax payable thereon. This is carried out by submitting a corporation tax return to HMRC along with supporting statutory accounts and tax computations. The corporation tax liability is payable within 9 months and 1 day after the end of the accounting period.

From 1 April 2023, there is no longer a single Corporation Tax rate for non-ring fence profits (22/23 there was a single main rate of 19%). At the Spring Budget 2021, the government announced that the Corporation Tax main rate for non-ring fence profits would increase to 25% for profits above £250,000.

If your company made a profit of £50,000 or less, you’ll pay the ‘small profits rate’ which is 19%. You may be entitled to ‘marginal relief’ if your profits were between £50,000 and £250,000. The £50,000 and £250,000 profit thresholds are proportionately reduced for short accounting periods and by the total number of ‘associated companies’ your company has.

What is an Associated Company?

A company is an associated company of another company when either:

• one company has control of the other company

• both companies are under common control.

This includes non-UK resident companies but excludes dormant and some ‘passive’ entities. Where business are under common control but the relationship between one or more companies is one of ‘substantial commercial interdependence’ they will not be deemed as associated.

If you are a limited company, calculating corporate tax can be time-consuming - let us do it for you.

You must pay Corporation tax on profits from doing business as:

• a limited company

• any foreign company with a UK branch or office

• a club, co-operative or other unincorporated association, eg a community group or sports club

Strict penalties are chargeable if you do not file the corporation tax return within the deadlines, similarly if you don’t pay your corporation tax bill on time, interest will accrue - this can prove to be a real burden for businesses.

We help you to drive your business growth and will be with you in every single stage of your business.

In our initial meeting we will discuss your requirements and generate a good understanding of your tax, compliance and payroll needs. At this stage we will also provide you with advice on all the available options suiting you and your company.

We offer the following:

• company and tax review

• determine the most efficient tax structure for your business and for you personally

• tax compliance - preparing and submitting documents accurately and on time

• deal with HMRC

• proactive advice - capital allowances/super deduction & employer pension contributions

Benefits of teaming up with Tacconi Green:

• up to date advice

• long term support

• confidentiality & honesty

• avoid late filing - avoiding penalties & interest

• ensure that you’re not paying more tax than you should be

Professional, friendly and reliable

We will ensure that we make it as simple as possible for you, and will support you in every step of the way. This starts the era of ongoing support and business growth, therefore, you will be getting the best from our services. Start ups or existing businesses, please get in touch for a free consultation.

Get in touch with our team on 01480 300945 or fill out the form below

We welcome your enquiry. Contact us so we can help you along the way.