Corporations must all work out a profit and loss at the end of each year and file a Company Tax Return within 12 months from the end of the accounting period. This determines the amount of tax which the company must pay to HMRC.
In order to ensure that values presented in the income statement are true and fair, it is important to have reliable accountants who work timely and accurately and ensure all sales and costs are recorded correctly and in time to ensure the entity does not need to pay a late filing penalty.
When filing your tax return, you must work out your profit or loss for Corporation Tax and Corporation Tax bill. While these can be done in-house, outsourcing these responsibilities to those with specialist accounting knowledge can have major benefits such as tax savings, fraud prevention, access to specialist software's and expert business advice.
As of 1st April 2022, the tax rate for corporations will remain at 19%, however, for the Financial year starting 1st of April 2023, Corporation Tax will be split into 2 segments. While the rate of 19% will remain constant for companies with a profit of less than £50,000, the tax rate for companies with profit over £250,000 will be 25%. For those companies with profits between £50,000 and £250,000, they will need to pay 25% but will benefit from a marginal relief providing a gradual increase in the effective Corporation Tax rate.
