Basic Guide to Corporation Tax

Accountants can help when it comes to dealing with all things relating to your company’s corporation tax. However, when it comes to ensuring that the company’s tax affairs are in order, the ultimate responsibility falls on the director of the company.

As a director, you have to make sure that the corporation tax liability of your company is accurate, filed on time and ensure that you make the payment when it is due. If you are still trying to figure out the ins and outs of corporation tax, we have written a handy basic guide on how to comply with the rules set when it comes to UK’s corporation tax.

Who pays Corporation Tax?

Limited companies in the United Kingdom are all required to pay Corporation Tax. This tax is charged as a percentage of the annual company profits.

Corporation Tax is also applicable to the following organisations:

• Members’ clubs, societies and associations

• Trade associations

• Housing associations

• Co-operative and other businesses that are run by group of individuals but are not declared as partnerships

Who is exempted from Corporation Tax?

Businesses that are operating as sole traders or partnerships are not covered by Corporation Tax rules. Additionally, individuals that run these kinds of businesses are considered self-employed and will pay their tax dues based on their business profits, which is self-assessed annually.

To ensure that you are complying with the rules on Corporation Tax and avoid heavy fines, hire a professional to help you. By hiring a professional, you are equipped with their vast experience and expert knowledge in the field.

Albert Goodman is a leading firm of Chartered Accountants, Tax Consultants and Financial Planners based in Taunton, Yeovil, Bridgwater, Weymouth and Weston-super-Mare The firm is also able to offer Business Recovery and Insolvency, Corporate Finance and Workplace Pensions services. Don’t hesitate to contact us to discuss what we can do to help you.