Do I have to pay corporation tax?

If you’re a limited company, you have to pay tax on your profits by law in a 12 month financial period.

You will have to pay corporation tax based on your annual accounts calculation.

Corporation tax is paid on:

  • Trading Profits
  • Investment Profits
  • Asset Selling

As accountants, we will prepare your corporation tax return and send it to HMRC every year.

Rates of Corporation Tax 2015/2016

The UK Government decides how much corporation tax should be charged for any given year and they are liable to change.

We calculate your tax by looking at the profit you earned and working out how much you should pay against the taxable rate.

Calculating tax with larger businesses can become a complicated affair if you do not have an accountant.

There are varying rates for the size of profit and ways to reduce it.

A very basic table with rates is below.

Profit Earned

£0-£300k

£300k – £1.5m

£1.5m +

Tax Due

20%

20%

20%

Download Tax Card

If you want to know more about tax rates, please download the tax card above created by KPMG after the 2015 budget.

If you need any more information about taxes or just want to have a discussion about how we can reduce your tax, get in touch!

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How can I reduce my corporation tax?

If you are a limited company, we can help you reduce how much tax you need to pay.

For the past 30 years we’ve been helping businesses across the UK with their tax affairs.

There are many different ways to reduce your tax.

Claim Business Expenses

We can deduct any expenses from your income that are sustained in the day to day running of your business.

This will effectively reduce your profit and the tax you have to pay.

Business expenses include (but are not limited to)

  • Technology (such as Laptops or Mobiles, Broadband costs)
  • Motoring Costs (provided the vehicles are used in business operations)
  • Employers NIC
  • Parking Costs
  • Travel Costs (for business purposes)
  • Training Courses
  • Stationery Costs
  • Advertising and Marketing Costs
  • Professional Costs (A solicitor for example)
  • Company Car expenses

Claim Capital Allowances

Capital allowances are claimed for when you purchase assets such as plant or machinery for your business.

You can also claim for certain aspects of business improvements, such as if you had to make your property more energy efficient.

The Government has set an annual investment allowance, which is a figure you can claim under for assets you have purchased.

This is currently set at £500,000.

If you go over this figure you can claim a percentage under capital allowances.

Reduce your taxes with us…

“The Government is constantly changing tax regulations. Our team knows all about taxes and how we can save you paying HMRC needlessly.”

Asghar Chaudhry, Partner

Call 0113 2486019 today.

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