Corporation Tax
Our corporation tax services offer expert guidance to optimise your company’s tax filings, ensuring compliance while maximising savings and enhancing financial growth.
Corporation tax management requires a comprehensive approach. We will conduct a detailed assessment of your unique circumstances, business operations, and investments to help you minimise tax liabilities now and in the future.
Understanding Corporation Tax Obligations
Every UK-based limited company must pay tax on its profits, and non-UK companies may also be liable. Additionally, all companies need to file a return within 12 months of their accounting period’s end, with their accounts forming the basis of this return.
However, tax bills are due within nine months of the accounting period’s close, which can be challenging. When we prepare your return, we thoroughly review liabilities and suggest ways to reduce them. Furthermore, we provide guidance on how much to pay. Typically, we complete accounts and returns within one to two months of the year-end, so you will know your obligations well in advance.
In addition, we manage your returns, review provisions, and resolve issues with HMRC or overseas authorities. Since tax is often a business’s largest expense, it’s crucial to reduce liabilities. The system is complex and ever-changing.
Finally, as businesses grow, restructuring may become necessary, involving the incorporation or separation of assets. The chosen structure can significantly impact future tax obligations, making early exit planning essential.
Managing Corporation Tax Compliance
Limited companies in the UK pay tax on their profits to HMRC, making tax management a key responsibility for any accountant. If you’re a new company owner, we can guide you through compliance and help you understand the relevant rates.
All limited companies must file a CT600 form with HMRC within 12 months of the financial year-end. You need to notify HMRC that your company is liable for tax, calculate your profit for each accounting period, and determine what you owe.
Tax regulations are complex and constantly changing. We help you stay compliant and minimise liabilities.
As businesses grow, restructuring may be necessary. This could involve incorporating or separating assets, which affects future tax implications. Planning exit strategies early is crucial for long-term success.
We offer corporate tax advice based on a deep understanding of owner-managed businesses. We also handle personal tax matters, providing a one-stop solution for all your tax needs.
Achieve Growth with Strategic Corporation Tax Planning.
At ABS Accountancy, we offer comprehensive corporation tax services, ensuring your tax return accurately reflects your finances without overpaying. We manage changing tax rates, legislation, and reporting, so you don’t have to. Our team ensures that your company’s tax return accurately reflects your finances and profit. You’ll never pay more tax than necessary.
We encourage you to discuss your growth plans with us, and we’ll help you create a strategy that supports your goals while staying tax-efficient. From gathering tax data to filing returns, we handle it all, aligning with cloud accounting best practices. We also align your activity with cloud accounting best practices to reduce stress.
We work closely with clients, understanding their businesses to offer proactive commercial advice and expert tax guidance. Contact us today to learn more and take the next step.
Why Hire an Professional Accountant for Your Tax Return?
Save Time and Reduce Stress
Having an accountant complete your tax return can save you a significant amount of administrative work and time. Additionally, ABS Accountancy offers much more than just basic filing.
Ensure Compliance and Accuracy
We will ensure that your personal tax returns are completed accurately and submitted on time, fully complying with HMRC regulations and current legislation. This approach not only helps you avoid costly mistakes but also provides peace of mind.
Maximise Savings and Minimise Costs
Furthermore, by avoiding expensive penalties, we will help you calculate relevant expenses accurately to ensure you’re not paying more tax than necessary. In fact, we actively seek out opportunities to save you as much money as possible.
Frequently Asked Questions
You must pay your corporation tax to HMRC nine months and one day after the end of your accounting period. It’s important to ensure that the payment is made on time to avoid any penalties or interest charges.
Corporation tax is calculated based on a company’s taxable profits, which include income from trading, investments, and the sale of assets. Companies must submit a tax return to HM Revenue and Customs (HMRC) to report their profits and calculate the tax owed.
Penalties apply for failing to file, late filing, and inaccuracies in your Corporation Tax submissions.
For late filing, you will incur a £100 penalty on the first day, another £100 after three months, and 10% of your estimated Corporation Tax bill after six months. An additional 10% penalty will apply after twelve months.
Companies House also imposes fines for late filings: £150 immediately, £375 after one month, £750 after three months, and £1,500 after six months.
You may also face various penalties for errors on your tax return. These penalties depend on how quickly you notify HMRC of the mistake, how deliberate the error was, and how concealed it was.
More information on tax penalties can be found here.
Personal tax applies to individuals and is based on personal income, while corporation tax applies to the profits of companies. Personal tax rates vary based on income levels, whereas corporation tax has a fixed rate that applies to all company profits.
Get in touch
If you’re seeking a professional, approachable, and friendly accountancy practice, you’ve found the right place.
Our team is here to provide personalised services, allowing you to focus on what truly matters, whether you’re an individual, sole trader, or owner-managed business.
