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Who pays corporation tax

Who pays corporation tax?

Corporation tax is a bill that all businesses, including limited companies and many other organisations, must calculate and pay to HMRC or risk facing fines or legal penalties. How do you know if you have to pay corporation tax? Are there any exceptions? Read on to find out.

What organisations have to pay corporation tax?

As you may guess, limited companies (private companies which have a legal identity separate from their owners and managers) which are UK based must pay corporation tax. Even companies that aren’t UK based but trade there must also pay it, but this is only taxed based on the amount of money they make in the UK. It’s not just limited companies that have to pay it, though – any sort of club with members must also pay it, such as holiday or sports clubs, as well as friendly or provident societies, even if they are not incorporated. Charities and associations are also subject to corporation tax. Groups of individuals carrying out a business, such as co-operatives, must also pay the tax.

Who is exempt?

There are a few exceptions to corporate tax. If you are a sole trader or partnership, i.e. your business is not a limited company and you are the exclusive owner, you do not have to pay it but will instead pay income tax. Charitable organisations are also exempt. If your business has closed and you have made no profits, you also will not have to pay it, but you will have to let HMRC know that you do not owe them or they will chase you up.

Who is responsible for paying it?

A company must calculate its own corporation tax – it’s not a bill that turns up in the mail. It is calculated on your annual profits at a rate of 19%, no matter the size or type of business you own. This includes any chargeable gains as well as trading profits. There are ways to reduce it which your accountant can help you with, but ultimately, it is the responsibility of the company director to make sure that the corporation tax return has been submitted in time (12 months after the end of the financial year) and paid.

Corporation tax is another stressful bill that business owners have to remember. If you need help with your year-end accounts & corporation tax, at Taxcare Accountancy, we can help you with all aspects of legally reducing your corporation tax, calculating how much you owe and getting it paid on time.

Affordable Pay-monthly Packages

We offer a full range of services to limited companies, solo trader, partnership, charity, LLP, CIC as well as individuals. We have arranged our services into easy to choose packages that suit your needs.

Start-up
£ 50  / Month (+VAT)

This price plan is suitable for the start-up companies who are not VAT registered.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Payroll & RTI submission for 1 employee
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Assisting with correspondence from HMRC and Companies House
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 80K
Limited Company
£ 100  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered and turnover is less than 100K with a couple of employees.

  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 2 employees
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • MTD VAT returns submissions – quarterly
  • Unlimited face to face advice and email support
  • 1 Director
  • 1 Shareholder
  • Annual turnover should be less than 100K
Company Pro
£ 150  / Month (+VAT)

This price plan is suitable for the companies who are VAT registered; turnovers are more than 100K and have 2 directors and shareholders.

  • Company formation (if required)
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission for up to 5 employees (Free)
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for Director only (Free)*
  • Unlimited face to face advice and email support
  • 2 Directors
  • 2 Shareholders
  • Annual turnover should be less than 200K
Company Premium
Let's talk.  / 

This bespoke price plan is suitable for the companies who are VAT registered, with more directors, shareholders and employees. Also, annual turnover is more than 200k and requires further bespoke services.

  • Company formation
  • Year-end accounts preparation and submission
  • Corporation Tax returns
  • Monthly payroll including RTI submission all employees
  • MTD VAT returns submissions – quarterly
  • Personal tax return [salary & dividends income only] (Free)*
  • File confirmation statement (annual return) with Companies House
  • Reference letters for the all Directors (Free)*
  • Unlimited face to face advice and email support
  • Flexible and can be discussed
  • Annual turnover should be more than 200K

Add on Services

  1. Personal Tax Returns

    This price plan is suitable for self-employed individuals, landlords and those who need to submit Self-Assessment Tax Returns.

    If you need to submit the Self-Assessment Tax Return, we can offer you competitive prices starting from £150 + VAT. Price can vary according to your nature of income. Please contact us for more details.

  2. Tax Investigation
  3. Business Legal Support
  4. Company Formation
  5. Business Mentoring
  6. ARA accounting services for ATOL & ABTA travel companies

    Our commitment to you is that we’ll ensure all the information we’ve submitted to the Civil Aviation Authority is up-to-date and accurate. 

Taxcare Accountancy was formed to provide Small & Medium Businesses with an affordable, proactive and professional accountancy services…