Who needs to pay Corporation Tax?

Corporation tax is paid to the UK government by all UK limited companies and foreign companies that have UK offices. Apart from this, the trade association, housing associations, societies and member clubs also pay it to the government. The submission and completion of returns totally depend on the company's director. They also have the choice to get help from experts.

How to pay the company's Corporation Tax bill?

You need to follow these steps to pay your corporation tax:

• First, register with Companies House.
• Prepare all the related documents and file company tax returns. You can also get help from accounting experts.
• Pay your tax with the methods given below. There are a few different ways you can pay to HMRC:
  • Payment through your online bank account - same day or the next day
  • Online or telephone banking or CHAPS- same day or next day
  • Online by debit or corporate credit card- same day or next day
  • Direct Debit - 3 working days
  • Online or telephone banking by Bacs- 3 working days
  • Bank or building society- 3 working days
  • Direct Debit-5 working days

On weekends or bank holidays, plan it as early as possible to avoid crossing deadlines.

When do I need to submit my Company Tax Return?

In case your accounts cover a period of fewer than 12 months, still it matches the corporation tax period, but if your accounts cover a period of more than 12 months, then there will be two accounting periods, and you have to file two company tax returns to HMRC –

• First company tax return for 12 months
• Second company tax return for the remaining period.

It may happen with many of the small businesses that they get confused while submitting Return when it is for a shorter period or a longer one but no need to worry as our expert tax accountants have specialisation in handling such cases and will calculate and file your return accurately and without any hassle.

Company Profits and Adjustments

In the case of Corporation Tax Return, you need to file tax on the profits you earned from doing business, investments and capital gains. Companies that are based in the UK need to pay on all its profits they earned from the UK and abroad.

Company tax return depends entirely on the profits and losses made by the Company. Still, these need to be adjusted before the tax filing deadline so that you don’t have to face any penalties going forward and everything will get sorted in good time. The Company tax return must include a calculation of tax disclosing the adjustment of profits in your financial accounts to work out the taxable profits.

Some businesses try to save their money on professional fees and ignore the assurance, skills and experience of an accountant but sometimes it may lead them into a big problem. Our experts at dns accountants check your filings with the help of efficient internal systems and HMRC Compliant software “Nomi”.

What is a Corporation Tax Returns?

A Corporation Tax Return is a return filed by Companies or associations to declare their profits, spendings and company tax figures to HMRC, usually once a year. It is essential for all active UK companies to file their tax return before the deadline to meet their legal obligations and avoid late penalties. Company tax reliefs and rates are changed several times on an annual basis, therefore you need to make the most of the allowances, exemptions, and deductions to reduce your Corporation tax liability.

How to file a Company Tax Return?

A Company should never pay their corporation tax after the deadline and give an invitation to the penalties imposed by HMRC. It can only be possible if a company can know about every deadline concerning tax return. A Company usually needs to file a return 12 months after the completion of the accounting period. The deadline is usually 9 months and one day after the completion of the accounting period.

There is no bill provided by HMRC, and you need to work out, pay and report your tax to HMRC on your own. Our experts at dns accountants not only calculate your tax but also pay and report the same to HMRC much before the deadline to ensure that there will be no penalties and you remain compliant by fulfilling all your legal obligations.

What are Corporation Tax Late Filing Penalties?

If you do not file your company tax return before the deadline, you will have to pay penalties to HMRC –

• If you’re 1 day late - Penalty of £100 will be levied
• If you’re 3 months late - Penalty of another £100 will be levied
• If you’re 6 months late - Penalty of 10% on the unpaid tax after the estimation of the bill by HMRC.
• If you’re 12 months late - Penalty of 10% of any unpaid tax.

Other than delay in filing, there are certainly more things which you need to take care of while filing to avoid penalties. Any wrong information on Company tax return may put you in a big problem which could lead to even high penalties. Our expert tax accountants can also help you in amending the return if you have already missed the deadline.