Corporate Tax

Overview

Corporation Tax is a system HM Revenue and Customs (HMRC) uses to collect Income Tax.

Eligibility Criteria

The following business are expected to pay corporation Tax:

• a limited company
• any foreign company with a UK branch or office
• a club, co-operative or other unincorporated association, eg a community group or sports club

Registration & Taxation

Register for Corporation Tax

Your accounting period is normally the same 12 months as the financial year covered by your annual accounts.

• Keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay.
• Pay Corporation Tax or report if you have nothing to pay by your deadline – this is usually 9 months and 1 day after the end of your ‘accounting period’.
• File your Company Tax Return by your deadline – this is usually 12 months after the end of your accounting period.

Taxable Profits

Taxable profits for Corporation Tax include the money your company or association makes from:

If your company is based in the UK, it pays Corporation Tax on all its profits from the UK and abroad.

If your company isn’t based in the UK but has an office or branch here, it only pays Corporation Tax on profits from its UK activities.

• Trading Profits
• Investments
• Selling assets for more than they cost (‘chargeable gains’)

Get Help

If you need help with Corporation Tax, you can: