Corporation Tax in UK: What is it? and How to pay?
What is Corporation Tax in the UK?
Companies all around the world pay taxes on their profits. Basically, the Corporation Tax is the tax that limited Companies pay in the UK on their operations. The rate of Corporation Tax for Limited Companies in the UK is 19% of the Company Profits. However, because of the allowances and exemptions, the percentage is often lower than 19% of the total company profits.
Is Corporation Tax only valid for profits?
Yes, the Corporation Tax is only valid when a Company makes profits. Thus, it stands at 19% of the profits that a company makes. In Short, a Company pays 19% tax on the profits that it makes through investments, purchases, and sales during its financial cycle.
A Company that fails to make any profits during the financial year will pay any corporation tax. However, it will file its tax returns.
Registration for Corporation Tax:
Companies register with Her Majesty’s Revenue and Customs, HMRC UK for the payment of their corporation Taxes. Annually, Companies file their tax returns and pay corporation taxes. If a Company does not make any profits during the financial year, it will file tax returns but will not pay any tax returns.
The registration should be done within the first three months of starting the business.
Corporation Tax Deadline:
This is the most confusing part of filing tax returns and paying corporation tax. The deadline for filing Company Tax returns is 12 months while the deadline for the payment of Corporation Tax is 9 months and 1 Day. This is an important difference to have in mind when dealing with Company Tax Returns.
Under these circumstances, the Company Formation Agencies like Liscard Business Centre can come in handy.
How to Pay Corporation Tax in UK?
After finding out the amount of Tax and deadline, you can pay the corporation tax in the following ways:
- Online and telephone banking
- Direct Debit
- Online by debit or corporate credit card
- At your bank or building society
HMRC no longer entertains the payment of Corporation Taxes through personal credit cards.
You may also consider Liscard Business Centre for the payment of Corporation Taxes.
Liscard Business Centre
Liscard Business Centre is a company formation service that offers different packages for company formation in the UK. If you want to register your businesses anywhere in the UK (that includes England, Scotland, Wales, and Northern Ireland), Liscard Business Centre would be pleased to help. We can help you in forming your companies in much shorter periods of time while also saving you considerable sums of money.
Registration, Documents Verification, Banking Details, Tax payments and Returns, Statements of Association, and Official Addresses are all managed by Liscard Business Centre.