Corporation Tax

How to Calculate and Pay Corporation Tax

How to Calculate and Pay Corporation Tax

All companies must pay corporation tax on whatever profits they make – even unincorporated organisations such as clubs and societies pay corporation tax on any profits they make. The responsibility for calculating the amount of tax you owe is largely your own – do not wait until the end of the tax year to think about it, since your activities during the year will go a long way towards affecting the final figure. Here we look at how to calculate the tax you owe; offset your profits with losses, and minimise your tax bill. How are taxable profits calculated? Corporations can make profits on several different aspects of their business and all forms of profit made during an accounting period are taxed – they must be totted up separately and then added together to reach a complete figure. Profi... »

HMRC: File Returns and Pay Corporation Tax Online

Businesses must file their corporation tax returns online and make payments electronically from 1 April, HM Revenue & Customs (HMRC) has warned. Companies with accounting periods ending after 31 March 2010 are obliged to file their company tax return online. All businesses will have to pay corporation tax bills electronically from April by Direct Debit, debit or credit card, using the BillPay service or bank transfer. HMRC spokeswoman, Helen Jones, said that from April 2012 it will also become compulsory for all firms registered for VAT to submit their returns online. “We’ve found that a lot of businesses have already voluntarily registered for VAT online,” she added. “They’re ahead of the game.” To sign up for corporation tax online filing, visit the HMRC website »

Stamp Duty Land Tax - Budget 210 - GT

Budget 2010

Introduction Alistair Darling’s third budget, Budget 2010, is the last budget before the next General Election, the last budget of the current parliament. Budget 2010 is the first budget since the UK has emerged from possibly the worst global recession in 60 years. »

Tax Cuts

Chancellor pressured to cut tax in Pre-Budget

Business groups have called for a cut in corporation tax in the upcoming pre–Budget Report (PBR) to help small firms weather tough economic conditions. The Federation of Small Businesses (FSB) has called for next April’s increase of the small companies’ tax rate from 21% to 22% to be scrapped, but the Institute of Directors (IoD) and the Forum of Private Business (FPB) have gone even further. The IoD has asked for a four pence reduction in the main rate of corporation tax and a three pence reduction in the basic rate of income tax for 2009–10, while the FPB has called for the small companies’ tax rate to be cut to 20%. IoD director general Miles Templeman said: “The British economy is facing a unique set of once–in–a–generation challeng... »

Darling’s first Pre-Budget Report

The Chancellor, Alistair Darling, has delivered his Comprehensive Spending Review and Pre-Budget Report, but is there anything within his main points of particular relevance to British business? Firstly, he revised downwards the growth rate of the economy next year from 2.5%-3% to between 2% and 2.5% but expects growth to be around 3% in the year 2009/2010, saying that despite recent worldwide economic events, including increased raw material costs and financial uncertainty, the British economy remains strong. He stated that he intends to simplify the tax system, thereby allowing half a million business to function easier and save businesses £1,000,000 a year, though with no details of quite how he is going to do so as yet. The main rate (full rate) of Corporation Tax (Corporate Tax)... »