Is your business registered as a limited company? If so then you’ll have to pay corporation tax.
As a director you’ll individually be subject to National Insurance Payments and PAYE tax. You’ll also have to fill out a self-assessment tax return for yourself.
The business will be treated by HMRC as a separate entity entirely, making it liable for corporation tax. The business will be liable to pay corporation tax on profits and surpluses.
And it’s not just limited companies that are required to pay corporation tax. PLCs, unincorporated associations and more are also liable. That can include societies, clubs, membership organisations and many others.
So what defines ‘taxable profits’? Profits that fall under the umbrella include trading profits and investment profits. Capital (chargeable) gains are also liable for corporation tax.
Even if your profits are all coming from abroad, if you’re based in the UK your business will be liable for corporation tax.
If you have a UK branch, however, and aren’t based in the UK then corporation tax will only be based on profits from the company’s UK activities.
You need to alert HMRC if you’re liable to pay corporation tax as soon as possible. It needs to be paid on time while a Company Tax Return also needs to be filed at the right times.
Tailored Accounts will deal with your company’s corporation tax throughout the year and ensure all deadlines are met at the end of accounting periods and more.
Tailored Accounts can make corporation tax easy to understand and take the burden off your shoulders when you outsource to our trained tax professionals.
If you’d like to know more about how Tailored Accounts can handle your corporation tax and other accountancy facets of your business contact our team today!