What is Corporation Tax and what types of businesses need to pay it?
Corporation Tax is a tax on the taxable profits of limited companies and other organisations including sports clubs, societies, associations and other certain unincorporated businesses.
What are the deadlines with respect to Corporation Tax?
The requirements to comply with HMRC regulations are generally that you must pay your Corporation Tax bill within 9 months of the end of your financial year, and then file your company Tax Return within 12 months of the end of your financial year.
The rules are more complex with those who do not have accounts spanning a period of 12 month or have high levels of Corporation Tax liabilities.
There are, of course, penalties for late filing of Corporation Tax returns and for those who pay Corporation Tax late.
What is a Self Assessment Tax Return?
Self Assessment is a means of declaring your income, costs and profits to HMRC, for anybody that earns income outside of the PAYE system.
Once your full income for the year has been established, with costs and any tax deducted at source omitted, the tax and National Insurance due on your taxable profits can be calculated.
When does a Self Assessment need to be submitted?
The tax year runs from 6th April to 5th April each year.
The Self Assessment and any tax and National Insurance due to HMRC must be submitted by the 31st January of the following year. This is the last deadline for filing electronically.
What happens if you are late submitting returns and/or payment to HMRC?
HMRC will charge you a penalty for late submission and/or payment.
The penalties increase the longer the returns or payment remain outstanding.