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 reach HMRC and cleared funds by 9 months and 1 day after the end of your accounting period.
• g. Companies with period end 31^st March 20X0 by 1 January 20X1
• In the case of the majority of Avar Clients, their year end is 31 March and therefore any tax due must be paid and reach HM Revenue & Customs (HMRC) on or before 1 January 2018.

How to Pay

• Payment can be made by
  • BACS
  • CHAPS
  • Debit or Credit Card
  • At your Bank or Building Society
  • Direct Debit
• When making 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

Penalties for late filling

• For details on Corporation Tax Penalties, click this link

Interest Charges

• For details on Corporation Tax Interest, click this link

Finally

• For more details on Corporation Tax, this link will show you the various literature on the topic.