Corporation Tax

Corporation Tax is a tax on the taxable profits of limited companies and other organisations including clubs, societies, associations and other unincorporated bodies
Taxable profits for Corporation Tax include:

  • profits from taxable income such as trading profits and investment profits
  • capital gains – known as ‘chargeable gains’ for Corporation Tax purposes

Corporation tax calculated by ‘Corporation Tax Self Assessment’. This simply means that that it’s up to you (rather than HMRC) to work out how much Corporation Tax your company or organisation must pay for each Corporation Tax accounting period. In other words you ‘self assess’ your own Corporation Tax. You do this by filling in a tax return known as a Company Tax Return and sending it to HMRC.

Corporation Tax Self Assessment for limited companies and organisations is a different tax from Self Assessment for individuals, self-employed, sole traders or partners. One common feature is that you self assess your liability for the tax.

Corporation is tax payable

For small and medium sized companies

  • Nine months and one day after the end of the accounting period

For large companies

  • Instalments
    • The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
  • Balance
    • Nine months and one day after the end of the accounting period

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