Corporation Tax
Corporation Tax Returns
Corporation tax is probably the most frustrating thing about managing your businesses finances. It’s difficult to calculate, time consuming, easy to forget and incurs serious financial penalties if you get it wrong. You essentially want it over before you’ve even started but with 9 months to do it who doesn’t push it to the back of the queue?
The worse thing, however, is due to its complexity it’s easy to miss potential benefits available to you and you end up paying more than you should.
What do I need to pay corporation tax on?
Corporation tax is calculated against your company’s profits once all business outgoings are accounted for, such as expenses, salaries and running costs. With this in mind, ensuring profits are accurately reported is the first step in making sure you do not overpay.
A common pitfall for many is not realising profits might also include investments the business has made or assets it has purchased..
Ensuring an efficient corporate tax bill
While taxes are a necessary requirement, it is important to ensure you do not overpay. You must pay what you owe, but equally you want as much available capital as possible to fund your growth. Handing over money you don’t need to can stifle this growth and, whilst it’s possible to retrieve it from HMRC, the time you invest to do so is lost forever.
This is where we can help. Ensuring your businesses finances are accurate by:
Devising the most suitable corporate tax structure for your business
Ensuring you take advantage of the tax reliefs available including any that are specific to your industry
Reducing tax on disposals and maximising relief on acquisitions
Meeting the demands of compliance & acting on your behalf when dealing with tax authorities
Through effective corporate tax planning you can potentially see significant savings whilst still complying with your legal and moral tax obligations.
Do I have to pay corporation tax?
This will depend on the structure of your business. Corporation tax is levied against Limited Companies and the accounts they file with HMRC.
How your business is structured and operates will have an impact on the amount of corporation tax you have to pay.
How your business is structured and operates will have an impact on the amount of corporation tax you have to pay.
This, however, does not mean you simply save money by not being Limited company and remain a sole trader. Depending on the size of your business and turnover, different business setups have different obligations.
If you are unsure of your businesses tax obligations, contact us today for a free consultation.