Corporation Tax

Corporation tax is payable on a company’s taxable profits. These are based on the profits shown in the accounts after adjusting for various items, the most common being: -

  • Disallowable expenses (eg entertaining)
  • Non Taxable income (e.g. dividends)
  • Depreciation
  • Capital Allowances

Companies are required to make a self assessment return of their taxable profit and pay their tax without demand. The tax is normally payable 9 months after the end of the accounting period, with the return being due 12 months after the end of the period. Interest is charged on tax paid late and penalties are chargeable if the return is late.

Depending on the level of profits, tax may be payable at rates ranging from 0% to 30% (See tax tables) Companies that pay the full rate may also have to make instalment payments of tax which advances the payment of their tax liability.

LaiPeters & Co are well equipped to deal with both corporation tax compliance and planning issues. Some of the specific areas in which we can advise are:-

  • Capital Allowance claims
  • Group tax planning issues
  • Capital gains planning issues
  • Reorganisations and demergers
  • Transfer pricing
  • Loss planning
  • Family company issues e.g. extraction of profits
  • Inland Revenue investigations.