Corporation Tax

Corporation Tax

Corporation Tax and Limited Liability Companies

When a limited company is incorporated it is required to register with HM Revenue & Customs to whom it must submit a corporate tax return annually to declare what corporation tax is payable.

The information that is entered on a corporate tax return is derived from the company’s annual accounts and the tax payable is based on the profits of the company.

How is corporation tax calculated?

With effect from 1st April 2020, the rate for corporation tax is 19% which is payable on the profits that a UK registered business makes. This rate will also apply in 2021 although it may subsequently be changed in future years.

The tax liability is calculated on a self-assessment basis using the financial information included in a company’s annual financial report.

121 Company Formation offers a comprehensive accountancy service. As an experienced accounting company that specialises in offering sound business advice to start-up, small and medium sized companies, we can assist you to run operations in the most tax efficient way, prepare your year-end accounts and calculate and complete your annual corporation tax return.

Does every limited company pay the same rate of corporation tax?

All limited companies are obliged to pay cooperative tax on their profits, even a company that is based overseas but has a branch in the UK through which it trades must pay the 19% rate on any profits that relate to its UK activities.

In these circumstances, we would advise you to contact 121 Company Formation so that we can offer advice as to the most tax efficient trading model.

How can I access the 121 Company Formation accountancy services?

We currently have reduced prices on accountancy services for newly incorporated companies that have used our company formation service. We also offer this service to companies that are already incorporated.

On completion of our simple questionnaire, we will provide a quote for the best accountancy service package for your company.

Please email us at [email protected] for further details.

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