Your limited company Corporation Tax return will be prepared along side your final accounts. The normal due date for Corporation Tax returns is 12 months after the financial year end. However, in our tax authority’s infinite wisdom, the due date for payment of Corporation Tax is 9 months and 1 day after the financial year end. Accordingly, we prepare the Corporation Tax return alongside your annual accounts to ensure timely payment of any tax due.
Rates of corporation tax
The corporation tax rate applicable before April 2023, was a flat 19%.
From April 2023 the rates of corporation tax are as follows:
Companies with profits under £50,000 = 19%
Companies with profits over £250,000 = 25%
Companies with profits exceeding £50,000 but not exceeding £250,000 = marginal relief. The marginal relief calculation is complicated (you can find it here if you’re interested), but broadly the marginal rate of tax (for the amount of profits between £50k and £250k) is 26.5%
Corporation tax deductions
All potential claims and elections will be made to ensure that your tax liability is as efficient as possible.
As well as this, we will undertake a final review of your tax position to determine whether there are any further tax planning opportunities. If any such opportunities or projects present themselves, the options will be presented to you with applicable fees and a project specific letter of engagement. Often the fee structure for such tax planning projects will be a percentage of tax saved and so effectively the net fee cost to you of undertaking any such work will be nil as a result of the tax savings.
Such potential projects include (but are not limited to):
- Research and Development reports and claims
- Capital allowances reviews and claims (when large amounts of capital expenditure has been incurred, for example on renovating a commercial premises or football stadium)
- Pension set up and contributions (for which we use a trusted St James’ Place firm of Wealth Management advisors)
