If you operate as a limited company you are responsible for paying corporation tax on any profits that you make. If you are a company registered in the UK you must pay tax on your profits, even if they are made overseas. Over the last 10 years or so the levels of corporation tax have varied, with the current rate of corporation tax set at 20%. This rate will apply to any business which generates profits up to £300,000 on a yearly basis.
When a new limited company is set up, the owner is legally obliged to inform HMRC that they have opened the business. Even if the company is not making any profit or making a loss, a corporation tax return still has to be filed each year. Unless you are extremely skilled in accounting, you will need to employ a qualified accountant to deal with the accounts on your behalf. It is the responsibility of the company director to ensure that all tax returns are completed accurately and on time so corporation tax can be paid by the due date.
At the end of each financial year, an accountant will calculate how much corporation tax you owe. Many business owners will open another bank account specifically for VAT and corporation tax. A good accountant will be able to provide their expertise to help you fill out corporation tax forms, such as the CT600, accurately and by the required deadlines.
If you are not sure where to start with corporation tax accounting, it is important to seek the advice of a professional accountant.
With the right advice and support you can manage corporation tax with ease.
The Accounting Network can help you find a good accountant with experience in completing corporation tax returns in your industry. Start your search with us today and leave your corporation tax and CT600 forms in capable hands.