Introduction

Navigating company tax in the UK can be complex. This guide is designed to demystify the process, ensuring you understand your obligations, filing requirements, and deadlines.

 

Who Is Liable for Company Tax?

Q: Which entities are required to pay company tax in the UK?

A: Company tax applies to UK-incorporated companies and some other organisations, including member clubs and housing associations. Sole traders and partnerships are subject to income tax and not company tax.

 

Filing and Reporting Requirements

Q: What are my filing obligations for company tax?

A: If you operate a limited company, you must file a company tax return to report your profits and calculate your company tax liability.

 

Q: Is a tax return required even if my company didn’t make any profits?

A: Yes, a return must be submitted to HMRC regardless of whether your company made a profit or a loss during the financial period.

 

Status of Dormant Companies

Q: What’s the filing protocol for dormant companies regarding company tax?

A: Dormant companies, those not trading or not liable for company tax, do not need to file a tax return but must inform HMRC of their dormant status.

 

Registration and Submission Process

Q: How and when do I register and submit for company tax?

A: You should register for company tax upon incorporating your company or within three months of starting to trade. Submissions must include the CT600 form, your financial accounts, and relevant computations.

 

Taxation on Global Income

Q: Are UK companies taxed on their worldwide income?

A: Yes, UK companies are liable for company tax on their global profits, although relief may be available for any double taxation incurred.

 

Deadlines for Submission and Payment

Q: What are the deadlines for filing the company tax return and making payments?

A: Company Tax returns must be filed 12 months after the end of your company’s financial year. However, the payment of Company Tax is due nine months and one day after the end of the financial period.

 

Conclusion

Navigating company tax obligations requires careful planning and timely action. Early preparation and, where necessary, consultation with a professional can help ensure compliance and optimise your company’s tax position.

For any further queries, please don’t hesitate to reach out via our Client Services email. We’re here to help!

 

About Neame & Co 

At Neame & Co we specialise in stress free company filing: the easy way to file your year end Company Accounts and Corporate Tax Return to Companies House and HMRC. Maximise tax efficiency, real human support throughout and 100% online and paperless service. Visit Neame & Co for more details on how we can help!