Corporation Tax is a tax obligation of limited companies and different organizations like clubs, societies, associations and unincorporated bodies taxable profits. This article will help you understand the Corporation Tax.

•    Corporation Tax is a kind of taxable profits coming from limited companies and organizations like clubs, charities, co-operatives and other unincorporated bodies.

Corporation’s taxable profits include:

1.    Profits from Trading and Investment (dividend is not included because this is taxed differently)
2.    Profits from capital gains – for Corporation tax purposes this is known as “chargeable gains”.

Now, if the company or organization is based in UK, the company or organization is require to pay Corporation Tax from all of their taxable profits – profits not only from UK, also profits coming from other part of the world.

And, if the company or organization operates in UK but not based in UK, the company or organization need to pay Corporation Tax taxable profits coming from UK activities.

•    If the company or organization is subject to Corporation tax, here’s what you need to do:
   
1.    pay the right Corporation Tax amount on time
2.    file the company’s tax return and other supporting documents

Each of these requirements has different deadlines. There is guarantee that if the company or organization didn’t follow these guidelines, interest charge or penalties will surely happen.

Pay before the filing

The payment deadline for Corporation Tax is before the deadline of filing of Company Tax Return. The company or organization must:

1.    pay by 9 months – after the end of their accounting period
2.    file by 12 months – after the end of their accounting period

•    Hiring a professional can help you especially if the corporation tax is complicated or complex.

•    Self Assessment of Corporation Tax is vital because you can determine how much Corporate Tax you need to pay for your company or organization. It means, you will “self assess” your corporation tax.