Corporation Tax is a form of tax that is payable for any corporation that generates profits. The HMRC will not send you a bill for your corporation tax, therefore there are things you must do to calculate and report what is due. If you are an extremely large company you will be expected to pay your corporation tax in four quarterly instalments. Other businesses will be expected to pay their corporation tax nine months and one day after their year end.
The HMRC will issue penalties if they believe a company has intentionally failed to pay their corporation tax. A penalty may also be charged if an insufficient instalment is made. If you discover you have made an error on your corporation tax return, the HMRC may cancel or reduce your fine. However, this will only be in circumstances when the HMRC believe that you have taken reasonable care to avoid inaccuracies.
If you fail to pay your corporation tax on time, the HMRC will also charge you interest on your late payment. It is important to schedule time to make any necessary payments as interest will continue to accumulate at a daily rate, until the correct payment has been made.
How can we help?
At J S White & Co limited we can help you to ensure that you understand what your corporation tax responsibilities are. We will complete a Corporation Tax return and submit this to the HMRC on your behalf. We will determine what figure is payable leaving you with the simple task of making payment to the HMRC.