If you plan to start your own business or expand your existing one in the UK, it may be a good idea to consider incorporation. Corporation tax can frequently help you save money on taxes each year while improving liability. Suppose you want to learn more about corporation tax. In that case, this article can explain some of the fundamentals of corporation tax and benefits in the United Kingdom.
What is Corporation tax ?
Corporation tax is levied to any limited company in the United Kingdom. A corporation must file a Corporation tax return to report its earnings every year. Suppose a company earns a significant amount of profits. In that case, the tax rate can be considered much lower than filing as just an individual.
In the United Kingdom, corporation taxes are levied at approximately 19% on all profits up to £300,000. This can result in significant cost savings over personal taxes, which could be significantly higher due to a claim for the same earnings. Incorporating a company or registering for a limited company could be an excellent way to save money on taxes while also having a viable business in the UK protected from liability.
What are the deadlines?
Corporate tax deadlines differ slightly from personal tax deadlines. When a company applies for a limited company license, they will have 21 months from the date of registration to file their first accounts and income statement. The company will also have to file annual charges for taxation purposes nine months after the fiscal year ends. Corporate taxes are due nine months and one day after a business's "accounting period" (year-end). A company must file a company tax return every 12 months after the fiscal year to calculate these corporate taxes. This cycle continues throughout the life of a business, ensuring that a corporation pays taxes consistently.
We help filing accounts, providing advice and assistance
Our team of tax professionals can assist you in filing Corporation tax as well as navigating the best path to save on Corporation taxes. Contact us today if you want to save money on your taxes regularly or are a small business owner thinking about incorporating. We can assist you in making sound financial decisions regarding Corporation tax in the United Kingdom. As a team of qualified tax professionals, we can help you in learning more about the taxes your company should be paying, as well as some strategies for lowering your yearly tax bill. Please get in touch with us right away to provide you with more information about corporate taxes and the needs of your business.