PLA

PLA-Logo-dark

Corporate Tax Accountant

The profits of every limited company in the United Kingdom are liable to corporation tax. Limited firms that are not based in the United Kingdom might nonetheless expect to pay corporation tax if the company’s primary control and management are located in the United Kingdom. Our team of corporate tax accountants can handle this for you so you don’t have to!

When you form a business, you must register it with HM Revenue and Customs (HMRC), demonstrating that your company is subject to corporate tax.

This means you’ll have to figure out how much profit your company makes each accounting period and how much corporation tax you owe HMRC on those profits. And they can quickly get rather nasty (to put it mildly) if you get it wrong.

On a corporate tax return form, you must appropriately report this information to HMRC. To support your tax return, you must also submit accounts and tax computations.

Writing plan
Professional executive Business colleague team working and analyzing with new project of accounting

If you file a tax return late or incorrectly, you will be fined, and if you pay your tax late, you will be charged interest. As a result, meeting your tax deadlines, which are established by your company’s annual accounting date, is critical.

Your strength, on the other hand, might be energizing your team, generating results, or leading a close-knit group — not endless admin. We can, fortunately, start taking care of it for you.

Our corporate tax accountants will assist you in preparing company accounts, tax returns, and tax calculations, as well as providing tax planning advice and assistance that will benefit both you and your firm.

Why are Corporation Tax Returns Complicated?

Perhaps, at one time, when you were a freelancer, you did your own self assessment tax return. And it was OK, once you did some research the process seemed to go off without too much hassle. So why do you need a corporate tax return accountant now? Are corporation tax returns really that complicated?

The best way to answer that question is probably to give you some basic information about what a corporation tax return requires and involves so you can determine for yourself just how complicated you might find it.

Corporation Tax Return Basics in 2022 and Beyond Explained

In recent years, the UK’s corporation tax code has undergone numerous revisions. Until the start of the COVID-19 crisis, the UK government was lowering corporation taxes in order to encourage company investment.

The Finance Act of 2021, on the other hand, now specifies that company tax will rise from 19 percent to 25 percent in the fiscal year 2023 and there is no sign that any plans to lower it are still under consideration.

HM Revenue and Customs (HMRC) is in charge of administering and collecting corporate tax in the United Kingdom. Corporations account for around 9% of HMRC’s overall receipts. In 2020–21, these receipts fell by almost 20% to £52.1 billion, putting a halt to the steady increase that had occurred every year since 2013–14.

In short, they want their money, so it’s more important than ever that the corporation tax returns you file are accurate, and more than ever perhaps, you need a corporate tax accountant on your side to help ensure that you don’t overpay because you missed out on the corporate tax breaks and allowances that do still exist.

Attractive smiling young businesswoman standing
Handsome african american man standing by the desk and thinking about new business project

Limited Companies and Corporation Tax

Limited companies are legal entities in their own right, unlike sole traders and partnership enterprises, which are extensions of the individual. As a result, the limited business requires its own bank accounts and records, and any profits produced belong to the firm rather than the individual. In the United Kingdom, there are two types of limited companies: limited by shares and limited by guarantee.

All limited companies must pay corporation tax on their income, which is usually 19 percent of net earnings. The corporation tax return (CT600) for the company must be filed annually.

The leftover profits can subsequently be dispersed among the members or shareholders once the corporate income tax has been paid. Recipients must fill out a self-assessment form to claim their distributions. Larger businesses are subject to more stringent compliance and reporting requirements.

You accept legal responsibility for the company’s performance, taxes, and reporting if you are a director of a limited company. This also means that if the company does not follow the necessary rules and regulations, you may be held personally liable. You must also file a personal self-assessment return with HMRC as a director of the company.

The UK government made significant modifications to off-payroll working laws (IR35) that affect limited company directors as of April 6, 2021.

In short, the new laws eliminate the need for freelance and self-employed workers to assess their own tax status if they supply services through their own limited business (also known as a personal service company) or another intermediary.

Instead, the burden of proof falls on the private-sector employers who recruit them. This is already the situation for all public-sector enterprises and employees.

This complicates their corporation tax return for many limited businesses who make use of these kinds of providers. And, as HMRC does not accept ignorance as an excuse for getting things wrong, any mistakes made will be penalized.

Senior Man Filling Application at Home
Young accountant in wheelchair

How Pearl Lemon Accountants Can Help

If your head is now spinning it’s OK, you are not alone. As expert corporate tax accountants at Pearl Lemon Accountants we help people like you – and businesses like yours – handle these increasingly confusing tax issues all the time.

By hiring us as your corporate tax accountant you’ll get access to the expertise you need to ensure that your business tax affairs are in order. But we aren’t just useful at tax time.

As a business grows its finances change (hopefully for the better) and we can work with you every step of the way to help ensure that your profits do too. We can also help you solve sticky employee classification issues, VAT headaches and more. We can even help you apply for grants, tax credits and more that you probably never knew you qualified for, so you can make even more money.

Ready to find out more about just how choosing Pearl Lemon Accountants as your corporate tax accountant will benefit both your business and personal finances?

Contact us today and let’s chat about it.