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 A jar of coins with 'TAX" written on the side as image for blog post 'I can't pay my Corporation Tax - what should I do?'

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

The Coronavirus Pandemic has brought mayhem to the UK economy. Previously healthy businesses are closed, with no idea when they will be allowed to reopen. The Government has announced a range of support options to keep the economy afloat, but as yet there has been no specific announcement around Corporation Tax Payments.

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, some of which were extended due to Covid-19, plus some draft legislation. The most notable of the consultations, as far as our clients are concerned, was around Making Tax Digital for Corporation Tax.

The NEW Super Deduction

In Spring 2021, a new ‘Super Deduction’ was announced. It’s goal was to encourage companies to invest in growth and to help kick-start the economy. The Super Deduction allows companies to claim 130% first year allowances for investment spend incurred on ‘main pool’ items of plant and machinery acquired between 1st April 2021 and 31st March 2023.

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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