Guide

Understand Corporation Tax

Introduction

Corporation Tax is a tax on the taxable profits of limited companies and other organisations, such as clubs and societies. If you run one of these, it may be liable for Corporation Tax. Even if your company or organisation is not liable, you may still have to submit a Company Tax Return, if requested.

You don’t get a bill for Corporation Tax. There are specific things you must do to work out, pay and report your tax:

  • register for Corporation Tax when you start doing business or restart a dormant business. Unincorporated associations must write to HMRC
  • keep accounting records and prepare a Company Tax Return to work out how much Corporation Tax to pay
  • pay Corporation Tax or report if you have nothing to pay by your deadline
  • file your Company Tax Return by your deadline - this is usually 12 months after the end of your accounting period

This guide explains Corporation Tax through a series of short videos. What is corporation tax? provides a simple explanation of want corporation tax is and who should pay it. Understanding and managing your Corporation Tax explains Corporation Tax for limited companies.