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.
