What what is the Corporation Tax, and how exactly does it affect a Limited Liability Company?

The regulation governing the corporate tax is one that you can find to be a little bit challenging to comprehend in its entirety.

When it comes to comprehending corporation tax, don't worry; as intimidating as it may sound, Contractor Accounting is here for you every step of the way; as a result, we've produced the following brief tutorial to help you out.

What exactly is the tax on corporations?

Corporation Tax is essentially a levy on your profits or a charge on any money left over after all of your expenses (including salaries) have been subtracted from your turnover. In other words, it is a tax on whatever money you make after your business has paid all of its bills. For instance, if your company has a revenue of £130,000 and you incurred business expenses totaling £40,000, you would be responsible for paying Corporation Tax on the remaining amount of $90,000.

Cheap accountants in London
Cheap accountants in London


What is the percentage that is applied to the corporate tax?

The administration has determined that a rate of 19 percent is appropriate at this time.

When is payment for the Corporation Tax required?

Your payments are due within nine months and one day of the day that the fiscal year of your company ends. Therefore, if the last day of your fiscal year is December 31, the payment for your Corporation Tax is due on October 1 of the following year.

Additionally, each year, 12 months following the fiscal year end of your business, you will be required to submit a CT600 tax refund.

Because HMRC takes the observance of deadlines and other criteria very seriously, you run the risk of being subject to a penalty or possibly having your Corporation Tax liability increased if you fail to fulfil these obligations on time. In addition to this, you will be required to keep accurate and complete financial records for a minimum of the six most recent fiscal years.


On our accounting deadlines page, you may learn more about the various deadlines that pertain to accountancy.


Do you require further assistance with the tax on corporations?

We at Cheap  Contractor Accounting understand that due to the hectic nature of your Work Style, you may not have sufficient time to fully comprehend all of the applicable tax regulations. Because of this, we will be at your side throughout the entire process and provide assistance so that you may maintain your impeccable reputation at all times.


Comments

  1. Munazir-Ahsan-Gilani-2023July 25, 2022 at 6:56 AM


    Thanks for such an amazing information. I have just read it. It really helps.
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    ReplyDelete

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