You need to pay corporation tax if you one of the following:
· A limited company
· A foreign company with a UK branch or office
· Another type of organisation which isn’t a company such as a club, co-operative or a community group or sports club
You don’t get a bill for Corporation Tax. There are things you must do to calculate, pay and report your organisations tax.
1. Register for Corporation Tax when you start doing business or restart a dormant business. Other types of organisations such as unincorporated associations must write to HMRC.
2. Keep accounting records and prepare a Company Tax Return
3. 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’.
4. File your Company Tax Return by your deadline - this is usually 12 months after the end of your accounting period.
Taxable profits for Corporation Tax include the money your company or association makes from:
· doing business (‘trading profits’)
· selling assets for more than they cost (‘chargeable gains’)
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.
We can take you through the process of closing your company or restart a company you were previously operating