Corporation Tax Flashcards
What are the basics of corp tax
Company profits lower than 50k = tax at 19%
Company profits over 250k = tax at 25%
Corp tax applied to incorporated businesses, limited companies and public limited companies
Does not apply to self employed -
If become inc - landed can pay dividends and have no NICs
Corp tax paid 9 months and 1 day at the end of the accounting period
HMRC do not issue the bill, responsibility of the company to pay right tax through self assessment, company can amend 24 months list trading period in question
The tax return itself can be filled in 12 month after the end of the accounting period!!!!!!
Where a business trades overseas it will pay corp tax on worldwide profits
Where company based abroad it will only pay corp tax on UK branches
Allowances and relief
deduct expenses that have been wholly for business purposes and relief for this
Close companies - where company controlled by 5 or less shareholders, known as participants, if loan made from company to participants, 25% tax charge applies and charged to company
