Everything You Need to Know About Corporation Tax
Navigating the complexities of Corporation Tax can be a daunting task for business owners, especially for those who are not well-versed in tax regulations. That’s where hiring an accountant comes in! Here’s everything you need to know about why it’s necessary to hire an accountant, and how our corporation tax services could be the right fit for your business.
If you run a limited company, understanding your Corporation Tax responsibilities is essential. Your company will generally need to file a Company Tax Return if HMRC has issued a notice to deliver one, even if you have made a loss or have no Corporation Tax to pay. Your return needs to accurately calculate your taxable profit and the amount of Corporation Tax due.
TOP TIP: Don’t leave your Corporation Tax until the deadline
Preparing your accounts and Corporation Tax return early gives you more time to identify errors, check allowable expenses and understand how much tax your company is likely to owe.
Is It a Legal Requirement to Hire an Accountant?
First things first – is it required by law for a professional accountant to handle your corporation tax? The simple answer is no.
Business owners have the option to prepare and file their tax returns themselves, and this can seem like a really attractive option for those looking to save on costs.
However, the complexities of tax laws and all the potential sanctions that can result from errors make this a risky approach.
You are responsible for making sure your company’s Corporation Tax return is accurate and submitted by the correct deadline, whether you prepare it yourself or use an accountant.
There is also an important distinction between your Company Tax Return deadline and your Corporation Tax payment deadline.
| Corporation Tax responsibility | Usual deadline |
|---|---|
| Pay Corporation Tax | 9 months and 1 day after the end of your accounting period |
| File Company Tax Return | 12 months after the end of your accounting period |
Getting to Grips with Tax Laws
UK tax laws can be hard to understand, and they are constantly evolving. Staying up to date with these changes can be challenging, particularly for business owners who already have plenty of responsibilities on their plate. Our skilled and qualified accountants, on the other hand, have years of experience in this area and keep up to date with all of the latest developments. This means that you can be sure that your tax returns are accurate and comply with current regulations.
What Does an Accountant Actually Do?
An accountant can do much more than simply submit your Corporation Tax return.
Depending on your requirements, they can help you with:
- Preparing your annual accounts
- Calculating your taxable profits
- Preparing and filing your Company Tax Return
- Identifying allowable business expenses
- Advising on tax reliefs and allowances
- Keeping track of important deadlines
- Providing tax planning advice
- Answering HMRC queries
- Helping you understand your company’s financial position
Having all of this support in one place can make managing your business finances much less stressful.
Need Help With Corporation Tax?
Not sure what your company needs to file, when your Corporation Tax is due or whether you’re paying the right amount? Get in touch with Linda Carr Accountants today. Our friendly team will be happy to discuss your requirements.
Time and Resource Management
Preparing Corporation Tax returns is a time-consuming task – and you don’t need us to tell you that time is a valuable resource in business. Working with us allows you to delegate this task to a professional, freeing up your time so that you can focus on growing your business. Corporation tax returns are anything but a chore to us, and we love ensuring that they are completed accurately with liabilities minimised before they are submitted.
Reducing Stress and Uncertainty
For many business owners, the prospect of dealing with HMRC can be stressful. The fear of making mistakes and missing deadlines can cause considerable anxiety – and this, in turn, can lead you to put off completing your return and raising the risk of errors and penalties. We provide peace of mind by managing these responsibilities on your behalf. When you choose us, any queries or issues will be handled professionally and efficiently.
REMEMBER: A tax return can still be required if you don’t owe Corporation Tax
A company may still need to submit a Company Tax Return even if it has made a loss or believes it has no Corporation Tax to pay.
What Happens If You File Your Corporation Tax Return Late?
Missing your Corporation Tax deadline can result in penalties, even if there is no tax to pay.
HMRC currently applies a £200 penalty when a Company Tax Return is one day late. Further penalties can apply if the return remains outstanding, with additional penalties potentially being charged after three, six and 12 months.
Late payment of Corporation Tax can also result in interest being charged.
This is why getting your accounts and tax return prepared in good time is so important.
What About Cost?
While hiring an accountant does come with a cost, our clients see this expense as an investment rather than a burden.
The potential savings from us completing and submitting your returns on time and the prevention of costly mistakes can far outweigh the cost of professional support. Our rates are some of the most competitive you’ll find online, and we work with a huge range of business owners.
Whatever your budget or the complexity of your operations, we are here to help.
Of course, the value of an accountant isn’t simply about reducing your Corporation Tax bill. Good tax advice should always be about making sure you pay the right amount of tax while remaining fully compliant with HMRC requirements.
How Linda Carr Accountants Can Help
At Linda Carr Accountants, we understand that running a business involves much more than simply keeping an eye on the numbers.
Our experienced team can help you navigate Corporation Tax, prepare your accounts, submit your Company Tax Return and provide practical advice throughout the year.
We work with businesses at different stages, from new limited companies completing their first accounts through to established businesses with more complex financial requirements.
Our aim is simple: to make your finances easier to manage while ensuring you remain compliant with your tax obligations.
Talk to Us Today
While it is not legally required to hire an accountant to handle your Corporation Tax returns, we certainly do recommend it! To find out how you could benefit, please get in touch with our team today. We would love to hear from you!
Frequently Asked Questions About Corporation Tax
Do I legally need an accountant to file Corporation Tax?
No. A company can prepare and file its own Company Tax Return. However, you remain responsible for ensuring the return is accurate and submitted on time, so many businesses choose to use an accountant for professional support.
When does a company need to pay Corporation Tax?
For most companies with taxable profits of up to £1.5 million, Corporation Tax is normally due 9 months and 1 day after the end of the accounting period.
When does a Company Tax Return need to be filed?
The usual deadline for filing a Company Tax Return is 12 months after the end of the accounting period covered by the return.
Can an accountant reduce my Corporation Tax bill?
An accountant can review your business expenses, tax position and available reliefs to help ensure you claim what you’re legitimately entitled to. The aim should always be to pay the correct amount of tax while remaining compliant with HMRC.
What happens if my Corporation Tax return is late?
HMRC can issue penalties for late filing, starting with a £200 penalty when a return is one day late. Further penalties can apply if the return remains outstanding.
Can Linda Carr Accountants handle my Corporation Tax return?
Yes. Linda Carr Accountants can prepare your accounts, calculate your Corporation Tax liability and file your Company Tax Return, while also providing ongoing advice to help you manage your business finances.