The tax known as corporation tax, or company tax, is imposed on the profits made by businesses or corporations. This tax is often estimated based on the business’s net income or taxable income, which is determined by deducting expenses from the total revenue produced.

The rate of company tax varies by nation and the particular tax regulations in force. Corporations may also be liable to additional taxes in some countries, such as value-added tax (VAT) or employment taxes.

TO DO’S

The first step is to register your business with HM Revenue and Customs (HMRC) using their official papers so they are aware that you are responsible for paying corporation tax.

You must determine how much profit your business earns for each accounting period and how much corporation tax is due on those profits if your company is subject to corporation tax.

In addition to submitting accounting and tax computations to HMRC in support of the return, this information must be presented to them on a corporate tax return form.

The deadlines, which are established by your company’s annual accounting date, must be followed because there are severe penalties for filing returns after the due date and interest is assessed on taxes paid after the due date.

Our accountants can help with the creation of business accounts, company tax returns, and tax computations. They can also offer advice on any potential tax planning opportunities that could be advantageous to you and your business.

There are several legal methods of preventing paying corporate tax:

Claiming permissible expenses:

Businesses can lower their taxable profits by deducting costs essential to their daily operations. They consist of costs like rent, wages, and transport.

R&D Tax Credits:

Tax credits may be available to businesses that engage in research and development (R&D) activities. They can be applied to lower a corporation’s tax obligation.

Contributions to pension plans: 

Businesses can lower their taxable profits by making contributions to employee pension plans.

Please Sign In With Google to Add a Comment.

Copyright @ Guardians Accountants 2023. All Right Reserved