Corporation Tax

Corporation Tax

The objective of our Corporation Tax Services is to work closely with directors to ensure the company pays the minimum tax utilising all possible Tax avoidance measures an efficient way.

Our comprehensive range of services designed to minimise your corporation tax exposure including:

  • Determining the most tax effective business structure;
  • Achieving the optimum capital or revenue tax treatment;
  • Reducing tax on disposals and maximising relief on acquisitions;
  • Identifying any beneficial claims or elections;
  • Advance planning of any changes in tax law which might affect your business.

Are you an owner-manager of a limited company or a foreign company with a UK branch or office? If so, you must pay Corporation Tax (CT) on profits from doing business in the UK. You don’t get a bill, but rather need to work out what you owe, pay it and report your tax. Business accounts and limited company tax returns need to meet certain deadlines set out for filing. For Corporate Tax (CT), the filing deadline is twelve months after the end of your accounting period. We not only help clients comply with their Corporation tax obligations, but also often help reduce their overall tax liability by identifying tax efficiencies.

Taxable profits include the money your company makes from doing business (‘trading profits’). Investments and selling assets for more than they cost (‘chargeable gains’) are also subject to corporate tax. Occasionally, we suggest a new business structure to reduce overall tax obligations. Other changes may include paying yourself a salary or contributing to a pension pot. Planning capital expenditure and claiming all expenses you’re allowed may also help reduce your overall corporate tax. Do you do business across multiple countries (jurisdictions)? This may also affect your taxes.

Corporation Tax rates UK

At Budget 2020, the government announced that the Corporation Tax main rate (for all profits except ring fence profits) for the years starting 1 April 2020 and 2021 would remain at 19%.

At Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1 April 2023. The small profits rate will apply to companies with profits of not more than £50,000, with marginal relief available for profits up to £250,000.

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