Turn corporation tax to your advantage with the tax experts at Accountants Plus.
As a business owner, corporation tax is a constant thorn in your side. Not only are you required to hand over a significant amount of your hard-earned profit, but if you aren’t 100% spot on with your paperwork, you could end up in serious trouble with the HMRC.
At Accountants Plus, our Glasgow tax accountants take the stress out of corporation tax, ensuring that your tax calculations are accurate, and that your tax returns are submitted correctly at the end of every tax year.
Not only that, but our in-depth knowledge of the corporation tax system means we can often substantially reduce your future tax bills by taking advantage of the many allowances, deductions and tax planning opportunities that exist for businesses in Scotland.
The last thing your business needs is to be paying over the odds at the end of the financial year simply because you didn’t have an expert accountant by your side!
What is corporation tax?
Corporation Tax is a tax that your company must may to the HMRC based on your tax-adjusted trading profit over the previous accounting period.
Qualifying taxable profits include any money your company makes from day-to-day trading as well as any investment returns or gains made from selling assets for a profit.
Current corporation tax rates
The current rate of corporation tax in the UK sits at 25% for companies making a profit of over £250,000 and 19% for companies making a profit under £50,000. Marginal relief may be available to companies that fall between these two thresholds.
For companies registered in the UK, corporation tax must be paid on profits from both domestic and international trading, whereas companies registered elsewhere with a UK office must only pay on profits made from UK trading.
All businesses registered at Companies House are legally required to submit corporation tax returns for each tax year and it is essential that you file your company tax return accurately and on time to avoid the wrath of the HMRC.
What is the deadline to pay corporation tax?
The deadline for paying corporation tax, or informing the HMRC you do not owe any, is 9 months and 1 day after the accounting period for corporation tax ends.
The accounting period for corporation tax is the period of time that is covered by your Company Tax Return and usually covers the same 12 months as the company’s financial year covered in your annual accounts.
Why choose Accountants Plus for corporation tax services?
Accountants Plus are the chosen tax accountants of ambitious businesses in Glasgow and across the whole of Central Scotland.
If you are serious about protecting and growing your wealth (and who isn’t) you need a tax specialist by your side.
Proactive tax advice
We can’t stand to see local Scottish businesses overpaying on their tax bills, We specialise in creating the most effective tax strategies possible to ensure you pay enough tax to meet your legal obligations, and not a penny more.
Expert Tax Knowledge
Tax legislation is complex and ever changing and trying to keep up when you are running a business is nigh-on impossible.
Luckily, tax is our business, and we have a team of tax specialists whose sole job is to stay fully up to date with the latest rules and regulations and use this expertise to save you money.
Business structure advice
Unlike many accountants, we do so much more than just filing tax returns on your behalf.
Smart tax planning can massively reduce your tax liability, and we will help you structure your business in the most tax efficient way possible. From limited companies to sole traders, we understand all the intricacies of the tax system and how to structure your business in a way the benefits you and not the HMRC.
Your tax obligations in expert hands
Corporate tax is a self-assessed form of tax, meaning the onus is on you to compile and submit your tax returns accurately and on time. You can’t simply wait on a bill to arrive.
We offer a comprehensive selection of tax compliance services including tax return submissions for corporation tax, VAT, income tax and more.
Adjustments and reliefs for corporation tax
All businesses must pay corporation tax, but by making the most of the allowances and reliefs you are eligible for, you can keep your bill to an absolute minimum.
We have a fantastic track record of saving our clients a fortune by reducing the amount of tax they have to pay and would be delighted to help you to do the same.
Capital allowances
Capital allowances are a form of tax relief available to businesses who have invested in equipment, machinery or business vehicles.
In some cases, it may be possible to deduct some or even all of the value of such items from your taxable profit when calculating your corporation tax.
There are many different capital allowances available to businesses in the UK including claims of up to £1m on certain items under the annual investment allowance (AIA) so this isn’t something you can afford not to be taking advantage of.
Other capital allowances include:
- 100% first-year allowances
- Full expensing (Replaced super-deduction capital allowance scheme in 2023)
- Written down allowances
Whilst all these allowances can be potentially hugely beneficial to a business, deducting one incorrectly, even accidentally, can be construed as attempted tax avoidance, so you should always consult with your accountant before making any deductions.
R&D Tax credits
Research and Development (R&D) tax credits available to certain businesses who have invested in science and technology projects, as part of a Government push to encourage innovation in business.
In order to be eligible for these credits, a business must prove their project attempted to advance the field, attempted to overcome a known scientific uncertainty, and that the problem could not easily have been solved by a professional in the field.
The ‘proving’ process can be complex, but we know exactly how to ensure eligible businesses are rewarded for their innovation and have a whole team of in-house R&D specialists.
Marginal Relief
There are two main thresholds for corporate tax rates in the UK.
19% for under £50,000 taxable profit and 25% for over £250,000 taxable profit.
Profits between £50,000 and £250,000 are taxed at an effective rate of 26.5%
To find out if you could reduce your corporation tax bill, get in touch with the expert tax accountants at Accountants Plus today.
Corporation tax losses
It is sometimes possible to carry trading losses from one tax year forward and deduct them from the taxable profits made in the next.
For example, if your company made a loss between April 2022 and April 2023, but a profit in 2023/24, you may be able to deduct these losses from your taxable profits for the latter tax year.
This is a massive help for start-up businesses who are likely to lose money in the first couple of years of trading, ensuring they aren’t punished once they start to trend upwards and are able to invest as much as possible in continued growth.
It can even help you move into a completely different tax bracket with the biggest savings seen when businesses move below the threshold for the effective marginal rate of corporation tax.
Contact your local corporation tax experts
The HMRC’s Company Tax Return form includes nearly 1,000 fields that must be carefully filled out by someone with an in-depth understanding of the company’s finances.
Any mistakes are likely to be extremely costly, either because you end up paying too much tax when you should have paid a lower rate, or because you incur a penalty for late or incorrect submission.
Why take the risk? Let Accountants Plus handle all your corporation tax needs and relax, safe in the knowledge that all your obligations are being met by accountants with decades of tax expertise.
