If you are going to be starting your own business or expanding your business in the UK it could be wise for you to look into the idea of incorporation. Corporation tax can often help to save you money in taxation each year as well as improve liability. If you would like to learn more about Corporation tax, this article can explain some of the basics of corporation tax and benefits in the UK.
Corporation tax in the UK is levied to any limited company. A company has to complete a Corporation tax return every year to report their earnings. The rate of taxation can be considered much lower than filing as an individual if a company is earning a substantial amount of profits.
Corporation taxes in the UK sit at about 19% on all profits up to £300,000. This can offer a considerable cost savings over personal taxes which could go much higher as a result of a claim for the same earnings. Incorporating a company or registering for a limited company could be an excellent way that you can save money in taxation as well as have a viable business in the UK that is covered under certain liability.
The deadlines for corporate taxes are a little bit different than personal taxes. When a company files for its license as a limited company they will have 21 months after the date that they registered to file their first accounts and income statement. Nine months after the financial year ends, the company will also have to file annual accounts for taxation purposes. Nine months and one day after the “accounting period” (year end) of a business corporate taxes are due. In order to calculate these corporate taxes, a company needs to file a company tax return every 12 months after year end. This cycle continues throughout the lifespan of a business ensuring a Corporation consistently pays taxes.
Our group of tax experts can help you in filing Corporation tax as well as navigating the best path to save on Corporation taxes. If you are interested in regularly saving money on your taxes or you are a small business owner thinking of incorporating, contact us today. We can help you make smart financial decisions on Corporation tax in the UK. As a team of qualified tax professionals, we can help you learn more about the taxes your business should be paying as well as some ways that you could work at reducing your yearly tax bill. Contact us now and we can provide you with more permission about corporate tax and the needs of your company.
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