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Corporation Tax

Corporation Tax Guide by The Tax Advisors: Professional and Affordable Tax Accountancy in the UK

At The Tax Advisors, we understand that navigating the intricacies of Corporation Tax can be challenging for businesses of all sizes.

As a team of professional and affordable tax accountants based in the UK, we are dedicated to helping you manage your tax obligations efficiently, allowing you to focus on growing your business.

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What is Corporation Tax?

Corporation Tax is a levy placed on the profits of companies and other incorporated entities in the UK. This tax applies to both UK-resident companies and non-resident companies with a permanent establishment in the UK. The current Corporation Tax rate in the UK is 25% as of April 2023, but this may vary depending on government policies and the specific circumstances of your business.

Key Corporation Tax Deadlines

Filing the Company Tax Return (CT600): This must be submitted to HMRC within 12 months of the end of your accounting period.
Payment of Corporation Tax: The payment is due 9 months and 1 day after the end of your accounting period.
Quarterly Instalment Payments (QIP): Larger companies may need to pay their Corporation Tax in quarterly instalments if their taxable profits exceed a certain threshold.

Missing these deadlines can lead to penalties and interest charges, making it essential to stay on top of your tax obligations.

How The Tax Advisors Can Help

At The Tax Advisors, we provide comprehensive support for all your Corporation Tax needs, including:

Calculation of Corporation Tax liabilities: We ensure accurate calculations of your tax obligations, taking into account all available allowances and reliefs.
Preparation and submission of the Company Tax Return (CT600): Our experts handle the entire process, from gathering the necessary financial information to filing your return with HMRC.
Tax Planning: We offer tailored advice to optimise your tax position, helping you to reduce your Corporation Tax liability where possible.
Dealing with HMRC: We represent your company in any communications with HMRC, ensuring that all queries and disputes are handled professionally.

Frequently Asked Questions (FAQs)

1. What is the Corporation Tax rate in the UK?

The standard Corporation Tax rate in the UK is 25% as of April 2023. However, small companies with profits under £50,000 may qualify for the small profits rate of 19%.

2. What expenses are deductible for Corporation Tax?

Deductible expenses include costs that are "wholly and exclusively" for business purposes, such as salaries, office rent, equipment, and marketing expenses. However, capital expenditures are generally not deductible, though they may qualify for capital allowances.

3. Can I carry forward Corporation Tax losses?

Yes, trading losses can be carried forward to offset against future profits, reducing your future Corporation Tax liabilities. Additionally, losses can sometimes be carried back to claim a refund for previous years.

4. What happens if I miss the Corporation Tax payment deadline?

Missing the deadline for payment of Corporation Tax can result in penalties and interest charges. It's crucial to ensure timely payment to avoid these additional costs. At The Tax Advisors, we help you manage deadlines effectively to prevent any issues.

5. How can tax planning help reduce Corporation Tax?

Effective tax planning involves strategies such as making the most of available reliefs and allowances, adjusting the timing of income and expenditure, and considering the structure of your business. Our team at The Tax Advisors can work with you to develop a plan that minimises your Corporation Tax liability while ensuring compliance with UK tax laws.

Why Choose The Tax Advisors?

Expertise: Our team comprises qualified accountants with extensive experience in UK tax law, ensuring you receive the best advice.
Affordability: We offer competitive rates without compromising on the quality of our services.
Personalised Service: We take the time to understand your business and provide tailored advice that meets your specific needs.
Proactive Approach: We keep abreast of the latest tax legislation, ensuring your business remains compliant and benefits from any new tax-saving opportunities.