Corporation Tax

Corporation Tax is charged on the profits of a company and is paid annually 9 months after the end of the accounting period to which it relates. The main rate is 28% although most companies pay Corporation Tax at the small companies rate of 21%.

Non-resident companies pay Corporation Tax on profits arising from trade carried on in the UK if they trade in the UK through a branch or agency.

Corporation Tax is always paid on profits (with various adjustments) prepared on an accruals basis and not on a cash basis.

We take advantage of the latest technology and produce computerised tax returns and computations. We will ensure your company pays the correct amount of tax at the correct time and minimise the amount you have to pay.

Planning

We can offer planning advice for all stages of a company’s lifecycle from incorporation through to the sale of the company, helping your company enjoy all available tax saving schemes. Pre-year end planning is especially important as the current year’s results can normally be predicted with some accuracy and time still exists to carry out any appropriate action.

Did you know that a company could claim additional relief for qualifying Research & Development costs? 150% of the costs incurred are deducted in computing profits to create an allowable loss to form the basis of a repayable tax credit.

Do you think about the timing of your dividend payments to shareholders? From a company’s point of view, the timing of dividend payments is not critical but from the individual shareholder’s perspective, timing can be an important issue. If the shareholder is a higher rate taxpayer, a dividend payment which is delayed until after the tax year ending on 5 April may give the shareholder an extra year to pay any further tax due.

Contact us for more tax planning advice.

Investigations

HM Revenue and Customs have various powers to ensure compliance with the corporation tax regime and interest and penalties may be levied for overdue tax and non-compliance. Their enquiries can range from straightforward requests for further information on individual items through to full reviews of a company's business including examination of the company records. We can liaise with HM Revenue and Customs and ensure any investigation is completed as swiftly as possible.