Corporation Tax

What is a Corporation Tax Return?

If you are the director of a limited company, it is your obligation to submit a Corporation Tax to HMRC (Her Majesty Revenue & Customs).

HMRC will not automatically register you for Corporation Tax. You have the duty to inform HMRC that the business is active, within 3 months of starting the activity.


HMRC will then issue a Corporation Tax Return for you to report out how much tax you have to pay. The profit or loss information is extracted from the Annual Accounts report to work out your taxable profit.

Even if there is no tax to pay or the company has made a loss, a corporation tax return still has to be filed with HMRC.

How much tax do I pay?

The current rate of Corporation Tax is 19%, payable on profit.

What do I need to do?

You must keep all of the accounting records for 6 years from the end of the last company financial year they relate to. Should HMRC open an investigation, you have to be able to provide all the books and records which have been used to prepare the Corporation tax Return. Failing to do so can result in a £3,000 fine.


What is the deadline to submit the Corporation Tax Report?

After the financial Year End, you have 9 months and 1 day to pay the Corporation Tax and 12 months to submit the Corporation Tax Return. Any late payment is accruing interest and a late submission of the Corporation Tax Return will incur a penalty.


What can Priority Point do for you?

  • We notify HMRC when your business becomes active and register you for Corporation tax

  • We prepare the Corporation tax computation

  • We notify you of how much tax you need to pay, methods of payment and deadlines

  • We file the Corporation tax Return with HMRC on your behalf

  • We keep you up to date with the changes in legislation to ensure your compliance with HMRC

Give us a call and allow a professional to handle the accounting side of your business.