All corporation tax must be paid electronically and corporation tax returns must be filed electronically. Tax computations and accounts must be filed in iXBRL format.

Who pays corporation tax?

All limited companies pay corporation tax. Some businesses that are not companies such as clubs and associations will also pay corporation tax. Sole traders and partnerships do not pay corporation tax. Instead they are taxed under Income Tax Self Assessment.

When is corporation tax paid?

For businesses with profits of less than £1.5m, corporation tax is paid nine months after the end of the accounting period. e.g for a company with a year end of 31st December 2015, all corporation tax must be paid by 30th September 2016.

For businesses with profits exceeding £1.5m, corporation tax is paid in instalments.

Deadline for submitting Company Tax Returns

Company Tax Returns must be submitted by 12 months after the end of your business accounting period. e.g for a year end of 31st December 2015 the Return must be submitted by 31st December 2016.

Penalties for late Company Tax Returns

HMRC charge automatic penalties of £100 for late Company Tax Returns. If the Return is more than three months late there is an additional £100 penalty. Very late Company Tax Returns incur penalties that are based on the amount of corporation tax that is unpaid.

There are also penalties for not telling HMRC that your company owes corporation tax and for errors in Company Tax Returns. These are based on the circumstances regarding the error.

Clayton Accountants Limited can help you keep on top of your tax responsibilities…

…Keeping HMRC happy AND allowing you to concentrate on running your business.