Considering the reliefs on tax and fluctuating rates annually, a company should aim to play smart and use the allowances, exemptions, and available options for deductions productively to calculate tax returns.
Our expert company tax accountants will address all the dynamics and technicalities related to tax your small business requires. We will have meetings for understanding your business, which will lead to policies resulting in minimal tax expense and effective structure to ensure the growth and risk mitigation of your business.
Filing a Corporation Tax Return
HMRC instructs each of the active companies to file a corporation tax return every year for calculating the payable corporation tax.
But companies can avail many of reliefs for minimizing the tax payment.
Corporation Tax Return
- The corporation tax return primarily decides your corporate tax bill inculcating the profit or loss of your company and other allowances and expenses for that matter.
- You should submit your return and payment to HMRC
- The corporate Tax return is calculated from your profits and loss as to how much you should pay to HMRC in the form of corporation tax.
- Currently, it is 20 percent but may decrease to 17% in 2020.
Deadline for filing of Corporation Tax Return
Ideally, companies are liable to pay and file the corporation tax return a year after the end of their financial year.
HMRC sets the accounting period of the company, and the taxman informs you about the deadline.
Components of a Company Tax Return
- The corporation tax evaluates your profit/loss from the statutory accounts to conclude on the due corporation tax.
- Your annual accounts are essential in this regard as the balance sheet, and income summary facilitates with the data to be used for calculation of your corporation tax return.
- Your profit is not directly related to the payable tax of your company only, but there are some reliefs, expenses, and allowances you can avail to save some of your money.
- You can make deductions in the form of Stationery or Business Travel that are allowable to claim.
- Businesses are also permitted to carry the losses of the last year to balance with profits in the future.
- An annual allowance of £200,000 for things like computers and printers is also available.
- You can decrease your taxable amount by cutting off any of the above heads. Let’s say if your profit is £200,000 and you have spent £50,000 on your business travel and £50,000 in purchasing of a computer. Now you are to pay tax on £100,000 only.
- The expenses have to be there for calculation of your tax return.
- There could be some complications in working out the reliefs allowed for representing the right information to HMRC via report.
Rates and breaks for Corporate Tax
Small benefits have the advantage of lower tax rates in comparison to larger ones. Furthermore, the recent budget has allowed some tax breaks for small businesses, which seems to continue in favor. You can make significant savings from the tax payments by regular following the legislation considering your pension arrangements and personal income. Mainly, when you have the room for spreading out the revenues.
Timely filing of Company Accounts with proper adjustments
You need to create a balance for your small business between both, trying to minimize the cost for the profession and for ensuring that you get the most experienced and smart one to drive you through the most befitting way possible.
Our tax filings for you will be double-checked by senior-most personnel in the field, and, through smart software, we recall both ourselves and you in advance for the filing deadlines. The reminder helps us in getting the required paperwork from your with needful adjustments and including the allowance well before the predetermined date by HMRC.