Starting a new company is an exciting prospect but it comes with numerous responsibilities, not least of which is registering your limited company for corporation tax. If you find this a difficult part to navigate, we’ve got you covered. From when to register to what information you need to submit your corporation tax, you’ll find all the answers you need right here. Let’s get started.
What is corporation tax?
Limited company registration in the UK requires the payment of corporation tax to HMRC. But first you need to register your company with the Companies House and then with the HMRC. In short, corporation tax is a tax based on the profits the business earns over a certain period of time. This profit must be taxed at a certain percentage every year. However, you are also required to pay this tax even if you make no profit and your business sustains losses as well.
Companies that are required to submit this tax are wide-ranging and may include those that provide goods and/or services such as: buying and selling goods with a view to making a profit; providing services; advertising; renting or buying property for business purposes; employing people; managing investments; earning interest; or receiving any other income (apart from payments for shares from the company’s first shareholders).
When do you need to register for it?
After your new company registration with the Companies House, you need to register this within the first three months of doing business. There are penalties for delaying the registration process.
Once done, the Companies House will submit your details to HMRC and following this, you’ll receive not only a letter of incorporation from the Companies House with your unique business number, but you’ll also receive a letter from HMRC which contains your tax details.
These tax details will include your unique tax number, which must be used each time that you make corporation tax payments.
What information do you need to submit your corporation tax?
In order to submit your corporation tax each year, you will need to have the following information on hand: your company’s 10-digit Unique Taxpayer Reference (UTR), Tax Office Number, the date the company became active, company name and registration number, the date your annual accounts will be made up to, the nature of business activities, the company’s main place of business and the name and address of each director.
Your reliable tax accountants in London
Yes, navigating the world of tax paying and VAT returns may seem difficult, challenging and complicated. But it doesn’t have to be with the right professionals at your side. At Tax Navigator, we not only take care of your VAT return services, we do so much more. We go above and beyond to help your business stay on the right side of the law and we help analyse your financial data to help your business succeed. It’s simply a matter of getting in touch with us to see how we can help and take your business to the next level.
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