Corporation Tax Made Easy.
The current 19% rate of corporation tax will continue until April 2023
Why do i have to pay Corporation Tax?
A limited company has to pay Corporation Tax on its taxable profits (not on its sales). These taxable profits include money that a company makes from doing business, rental income from property, and gains on the disposals.
Corporation tax payments needs to be received by HMRC no later than 9 months and 1 day after the end of your company’s financial year.
When making a corporation tax payment, all payments have a 17 character reference number. This tells HMRC which company the payment relates to, and to which accounting period the payment relates to.
The 17 character reference number is linked to the company UTR, which HMRC will send to a company’s registered office when the company is first incorporated.
A corporation tax return, or a limited company tax return, needs to be filed with HMRC no later than one year after the end of your company’s financial year.
So it’s interesting to note that with corporation tax, the payment of the tax is required three months before the actual corporation tax return is due for submission to HMRC.
The current 19% rate of corporation tax will continue until April 2023
Paying corporation tax in instalments.
If your company is classed as small (essentially annual profits of <£1.5m), your company will need to pay all tax in one payment and cannot pay by instalments. If you company is classed as large (essentially annual profits >£1.5m), then your company will need to pay corporation tax in instalments (with the first instalments starting within your tax year).
