{"id":559,"date":"2020-07-06T14:11:29","date_gmt":"2020-07-06T14:11:29","guid":{"rendered":"https:\/\/www.accountly.co.uk\/?p=559"},"modified":"2020-07-07T15:18:43","modified_gmt":"2020-07-07T15:18:43","slug":"corporation-tax","status":"publish","type":"post","link":"https:\/\/www.accountly.co.uk\/corporation-tax","title":{"rendered":"Corporation Tax Explained"},"content":{"rendered":"
Corporation Tax is a tax charged against any profits you make if you are a limited company<\/a>, a foreign company with a UK branch or office, or a club\/co-operative\/other unincorporated association.<\/p>\n<\/div>\n There are certain steps you must take for you to work out, pay and report your tax, as you won\u2019t receive a bill from HM Revenue and Customs based on your accounts. It is all self-assessed.<\/p>\n When you start up a business or restart a dormant one, you must register for Corporation Tax<\/a>, so HMRC know you are liable to pay. A record of all accounts, transactions and assets must be kept so you can file company tax returns when needed, and work out how much Corporation Tax is due. It will also allow you to work out whether you do actually need to pay anything.<\/p>\n Profits you will have to pay Corporation Tax on include:<\/p>\n If your company is UK-based, it pays Corporation Tax on all profits from the UK and abroad. If your company is based overseas but has an office\/branch in the UK, it pays Corporation Tax on profits from any UK activities.<\/p>\n Corporation Tax rates currently stand at 19% for 2020\/21, although there are some instances where you could pay less.<\/p>\n You may be able to deduct the costs of running your business from the tax payment, or claim allowances on things such as equipment, machinery and business vehicles.<\/p>\n There are other reliefs too, such as Research and Development Relief<\/a> (if your business makes a profit from patented inventions), benefits for creative industries who profit from theatre, film, television, animation or video games, Disincorporation Relief if you\u2019re closing your company and becoming a sole trader, ordinary business partnership or limited partnership, as well as a trading losses relief.<\/p>\n Corporation Tax can be a difficult and time-consuming payment to work out. HMRC are also rather inflexible with deadlines and inaccuracies, so if anything is wrong, you could risk a heavy fine or penalty. We introduce you to\u00a0specialist online accountants<\/a>, who don\u2019t just help with timekeeping, but also:<\/p>\n Do I have to pay Corporation Tax? Corporation Tax is a tax charged against any profits you make if you are a limited company, a foreign company with a UK branch or office, or a club\/co-operative\/other unincorporated association. There are certain steps you must take for you to work out, pay and report your tax, […]<\/p>\n","protected":false},"author":1,"featured_media":593,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[5],"tags":[],"acf":[],"yoast_head":"\n\n
Rates And Exclusions<\/h2>\n
Do I Need An Accountant for Corporation Tax?<\/h2>\n
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