Corporation Tax
Introduction
- This article gives a brief guide on Corporation Tax and explains:
- Which types of entity is subject to Corporation Tax.
- When to make a payment.
- How to make payments (if you have a liability).
- What to do if you are due a refund.
- Penalties.
- Interest on overdue Tax.
Type of Entities Subject to Corporation Tax
- Corporation Tax is paid on profits made by the following:
- Limited Companies.
- Foreign Companies with a UK branch or office.
- Clubs, Co-operatives or other Unincorporated Association, e.g. a Community Group or Sports Club.
When to Pay
- Corporation Tax is due to be paid to be paid HMRC, by cleared funds, in order to reach them by 9 months and 1 day after the end of your accounting period.
- For example, companies with period end 31 March 20X0 by 1 January 20X1
- In the case of the majority of Avar clients, their year end is 31 March
- Therefore any tax due must be paid and reach HM Revenue & Customs (HMRC) on or before 1 January 2020.
How to Pay
- Payment can be made by:
- BACS
- CHAPS
- Debit or Credit Card
- At your Bank or Building Society
- Direct Debit
- When making a payment please ensure you quote your Corporation Tax Payment Reference which is 17-characters.
- For further guidance and how to pay your Corporation Tax liability, click this link
Tax Refunds
- Refunds are due when the company has overpaid tax to HMRC.
- HMRC may also pay interest on amounts to be refunded.
- For details on Corporation Tax Refunds, click this link