Do I have to pay UK corporation tax?
All limited companies are required to submit a corporation tax return and pay tax on their profits. This tax is also commonly referred to as company tax, ltd company tax and business tax.
How do I register for corporate tax?
When you set up a limited company, HMRC are automatically notified and register a limited company for corporate tax. You will be sent a 10 digit unique tax reference.
What is the corporate tax rate?
For a single small businesses, it is currently 19%.
Can I pay corporate tax in installments?
Not if you are a small company. You must normally pay corporation tax 9 months and 1 day after your accounting year end. So for example, if your accounting period ends 31-March, you must pay the tax by 1 January the following year. (The regime for larger companies is different). The rules can become complex very quickly if you have more then 1 company.
Why don't I file the corporate tax return myself using my software?
If you can navigate the tax rules - why not! They can be found here and here.
What if I have missed the filing deadline for a UK corporate tax?
The penalty regime is harsh (unless you have a reasonable excuse)
- 1 day late - £100
- 3 months - another £100
- 6 months late - HMRC will estimate your tax bill and add a penalty of 10% on the unpaid tax
- 12 months late - another 10% on any unpaid tax
If your tax return is late 3 times in a row, the £100 penalties are increased to £500 each.