Corporation Tax

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Corporation Tax is the equivalent for a Limited Company to Income Tax for individuals. Payable by all UK based companies, it’s calculated according to the annual profits made, whether that comes from trading or from the sale of investments or assets, in the UK or abroad.

As with Self Assessment the onus is on the Company to tell HMRC how much it will pay, rather than HMRC to present a bill.

A company must:

  • Register for Corporation Tax when it starts to trade.
  • Keep sufficient accounting records that it may calculate accurately the correct amount of tax that must be paid, which is reported by submitting a Corporation Tax Return.

Deadlines for Corporation Tax at first appear a little backward!

Any tax must be paid nine months and one day after the end of the accounting period, while the Company Tax Return, which confirms the amount to be paid, is due for filing twelve months after the end of the accounting period.

We’ll usually prepare the Corporation Tax Return for clients at the same time as we prepare the Company Accounts, so the Accounting period is effectively ‘closed’ all at once. This helps the Directors plan for any resulting tax liability, as they’ll be forewarned in good time.

Any responsible business owner wants to ensure they’re paying the correct amount of tax, but no more than they need to!

In these articles, we’ve outlined some ways to keep your liability as low as possible, kept you up to date on changing legislation and explained what to do if you’re struggling to make your payment.

We’ll add more posts over time, as there are bound to be changes to come!

We hope you’ll find these posts helpful, but if you have any specific questions, please do get in touch.

Image of wooden block with stacks of coins above as illustration for post 'Corporation Tax in 2023'.

Corporation Tax in 2023

After numerous policy changes in the second half of 2022, the main rate of Corporation Tax will rise from 19% to 25% from 1st April 2023, for companies with profits of £250,000 and over.

This is a complicated new structure so let’s look at how it works…

Year End Tax Guide 2022/23

Arranging your finances as tax-efficiently as possible is extremely important, particularly as we approach the end of the tax year on the 5th April 2023.

Our Year End Tax Guide shows you lots of ways to do exactly that!

How much should I save for Tax?

Over the last few years we’ve all been shown that predicting the future is nigh on impossible. It’s also shown that we can’t rely on finding forthcoming tax liabilities from current trading income.

So how much should you aim to put away during the year?

Making Tax Digital for Corporation Tax?

The Government has published its responses to a number of consultations on tax policies announced in the Spring Budget. The most notable of the consultations, as far as our clients are concerned, was around Making Tax Digital for Corporation Tax.

What can you claim if you’re investing in your business?

When you’re investing in your business, it’s not a decision that you take lightly, and it’s one that can make a major difference to your profits and your tax liability.

It’s important that any resulting tax relief claim is considered carefully…

I can’t pay my Corporation Tax – what should I do?

Unless you save towards your Corporation Tax liability as the year goes on, it can be hard to find the lump sum when it falls due.

Whilst we’d always advocate for saving as you go to avoid the stress of a last minute panic, sometimes the best laid plans don’t work, and you may struggle to find the cash to make your payment.

What are Directors Loans?

Many Directors, particularly where the Company is small, can find themselves with an unexpected tax bill as result of Directors Loans.

But what are they, and what should you be aware of?

Key Tax Dates for Businesses

The tax year constantly repeats, so there are some key tax dates for businesses that you need to be aware of every year. Missing them can prove costly, so we’d advise getting them into your diary, and carrying them forward from year to year.

Tax Rates 2023/24

We’ve listed below the latest tax rates and allowances as announced in the 2023 Spring Budget, or before.

What are ‘Associated Companies’ in 2023?

Associated Companies will affect the amount of Corporation Tax due.

Additionally, the definition of an Associated Company is not as clear as you may first think!

Related News Items

Why not take a look at these sections too, as there is some overlap between our categories and we’d hate you to miss out!

Limited Company



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Can I just say we are so pleased that we have moved to Baranov Associates. As we discussed when you visited, we had to find a way to take the stress out of all of the financials and you’re doing that for us! We can see how to use Xero more efficiently and so with us being as on top of it as we can be and with you and Liz we feel a lot more confident about our business being in good shape.

Mrs S James, Sandbanks Capital Partners Limited

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