How much corporation tax will i pay

Keep in mind that unlike most taxes, the deadline for paying your corporation tax bill is earlier than the deadline for your tax return. If the end of your accounting period falls on 31 March , you'll need to make your payment by 1 January As a small business owner, staying on top of your finances can seem overwhelming, particularly when you're just starting out.

One of the key areas you need to keep an eye on is your taxes, and that's tricky subject to navigate. You want to reduce your tax bill wherever possible-and be in the good books of HMRC while doing so. Below, we'll share a few simple tactics you can implement to reduce your Corporation Tax. Keep in mind that these are tactics that apply to businesses in general, and depending on your situation or industry, there could be other tax reliefs that may apply. And as your business grows, there may be allowances or deductions that you now qualify for, but missed out on applying for previously.

As such, we highly recommend checking in with our accountants at Forma to clarify any tax issues you're unsure about. There are various ways you can make your corporation tax payment:. You can reduce your corporation tax bill by:. The corporation tax rates for previous years are listed on the HMRC website. All active limited companies in the UK are required to file a company tax return , otherwise known as the CT form. Corporation tax refers to tax you pay on the profits earned by your company.

Unincorporated associations must write to HMRC. Keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay. File your Company Tax Return by your deadline - this is usually 12 months after the end of your accounting period. Your accounting period is normally the same 12 months as the financial year covered by your annual accounts. Check what you need to do. To help us improve GOV.

It will take only 2 minutes to fill in. Cookies on GOV. UK We use some essential cookies to make this website work. The most common examples are profits on the sale of shares, land and buildings and business assets.

Profits chargeable to Corporation Tax 87, And finally, we have the profits chargeable to Corporation Tax. Note that any dividends received are NOT included. When can I claim a capital allowance? Buildings Unfortunately, buildings and alterations to buildings are deemed to be changes to the setting in which your business trades from and therefore capital allowances are not allowed.

Cars and other commercial vehicles Cars do qualify for capital allowances, where they are used in the business. Machinery, equipment, fixtures and fittings etc All of these qualify for capital allowances as all are deemed to perform a function within the business. Previous Slide Next Slide. Find out more. Corporation Tax calculator Use our handy interactive calculator to work out how much Corporation Tax you'll pay. Calculating your result. Your results. Recalculate with new details.

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Below are some common examples of expenditure which is disallowable for corporation tax purposes and must be added back: Expenditure Explanation Capital expenditure and depreciation Capital expenditure is the purpose or improvement of fixed assets.

Fixed assets are large items which are not bought to resell. For example, motor vehicles, buildings, office and computer equipment. Entertaining Client entertaining is not allowable. Staff entertaining is allowable of incurred wholly and exclusively for business purposes, for example team building. Donations Political donations and charitable donations to national charities are not allowable. Always keep a note of charitable donations as they may be allowable as a charge on income see How do I work out my profits above.

Penalties and fines These are not allowable as they relate to breaking the law. Legal fees Legal fees relating to capital items or breaking the law are not allowable. When do I pay Corporation Tax? End of Article. Share this content.