What is Corporate Tax?
Corporate Tax, also known as Corporation Tax, Business Tax and Company Tax is the taxable profit of an organisation, clubs, societies, associations and other unincorporated bodies.
Taxable profits for Corporation Tax include:
- Profits from taxable income such as trading profits and investment profits (except dividend income which is taxed differently)
- Capital gains - known as 'chargeable gains' for Corporation Tax purposes
If your company or organisation is based in the UK, you'll have to pay Corporation Tax on all your taxable profits - wherever in the world those profits come from.
How is the tax determined?
Company income subject to tax is often determined much like taxable income for individuals. Generally, the tax is imposed on net profits. In some jurisdictions, rules for taxing companies may differ significantly from rules for taxing individuals. Certain corporate acts, like reorganizations, may not be taxed. Some types of entities may be exempt from tax.
Many systems (particularly sub-country level systems) impose a tax on particular corporate attributes. Such non-income taxes may be based on capital stock issued or authorized (either by number of shares or value), total equity, net capital, or other measures unique to corporations.
Paying Corporation Tax
If your company is liable for paying Corporation tax then you must:
- Tell HMRC that you are liable
- Pay the correct amount of Tax
- File a complete Tax Return with Supporting Documents
There are usually set dates of for you pay and send of your files but with corporation tax they are not the same time, Generally they are:
- Pay the correct amount of corporation tax but 9 months and one day into the financial Year
- File your Tax Returns and supporting documents by 12 months
How can we help?
We at Niche have been working with businesses and clients for years to make sure that their tax is handled in the most efficient way, using government provided schemes and plans to reduce the total amount of tax that we can legally. If you contact us today we will arrange a meeting with you as soon as possible.