Corporation Tax Filing for UK Companies
In the UK, most people choose to set up a Limited Company for their business.
Once the company is incorporated, you must file a Corporation Tax return to report taxable profits, deductible expenses, and the amount of tax due to HM Revenue & Customs (HMRC).
To file for Corporation Tax, you need to submit a Corporation Tax Return (CT600) along with Statutory Accounts, which are used to determine how much Corporation Tax the company owes.
Corporation Tax Filing Process in the UK
Once your company is incorporated and within 3 months of starting your accounting period, you must inform HMRC if your company is actively trading and/or is liable for Corporation Tax.
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Accounting period: Typically 12 months, although you may choose your own period as long as you inform HMRC.
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Filing deadline: The Corporation Tax Return (CT600) must be submitted within 12 months after the end of the accounting period.
Corporation Tax Rates and Payment
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For companies with annual profits under £50,000, the standard Corporation Tax rate is 19%.
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For companies with profits over £250,000, the rate is 25%.
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Companies with profits between £50,000 and £250,000 pay tax at the 25% rate but may claim marginal relief, which gradually increases the effective tax rate.
Corporation Tax must be paid within 9 months and 1 day after the end of the company’s accounting period. Late payment will result in penalties.
Penalties for Late Filing
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1 day late: £100 fine
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3 months late: Additional £100 fine
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6 months late: HMRC may estimate your tax bill and charge a penalty of 10% of the unpaid tax
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12 months late: A further 10% penalty
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Three consecutive late filings: The initial £100 penalty increases to £500
Reliefs and Deductions
If certain conditions are met, you may deduct business-related expenses from your taxable profits, such as:
Capital allowances
Tax relief may be applicable on certain qualifying business assets (see below)
R&D tax credits
Available for eligible research and development activities
Loss carry-forward
Losses from a previous accounting period may be carried forward to offset future profits
Capital allowances are a type of tax relief for businesses. When applied, the allowance may allow you to deduct some or all of the value of business assets from your profits, before paying any tax.
Qualifying business assets may include: equipment, machinery, business vehicles (e.g. vans, lorries, cars for business use).
Our Services
TB Accountants offers expert, personalised services in Corporation Tax filing, reliefs, and deductions. We help ensure your company remains compliant while legally reducing tax liabilities and improving financial efficiency.
Success Stories
Client B: The expert tax advice from TB Accountants resulted in significant tax savings for our business.
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Client C: The audit services from TB Accountants ensured our compliance with regulations and improved our financial transparency.
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Client D: TB Accountants' consulting services provided us with strategic insights that boosted our business performance.
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