Salford Tax Specialists Ltd offer a full taxation service for UK companies and our aim is simply to ensure that your company pays the least amount of tax by excellent tax saving advice and to ensure your company is always tax efficient. In addition to this it is integral that all companies house statutory filing is adhered to and that deadlines are met. We ensure that all accounts are filed on time at Companies House.

A corporation tax financial year runs from 1 April to the following 31^st March, if a company has an accounting period which straddles 31^st March, the taxable total profits for the period are time-apportioned between the two financial years and then charged to tax at the rates applicable in those two years.

In financial year 2023, the rate of corporation tax will rise to 25%. There will be a small profits rate of 19%. Marginal relief will smooth the transition between these two corporation tax rates. The due date of payment for corporation tax is normally nine months and one day after the end of the accounting period. Large companies are required to pay their tax by instalments which are usually quarterly.

Interest is charged on underpaid corporation tax, but this interest is deductible under the loan relationships regime as a non-trading debit. Similarly, interest is paid on refunds of overpaid corporation.

UK companies are liable to pay corporation tax on their “taxable total profits”, no matter where in the world those profits arise. Companies which are not UK resident are within the charge to UK Corporation tax only if they trade in the UK through a permanent establishment or carry on a UK property business or a trade dealing in land in the UK or have gains arising on the disposal of UK land. A companies taxable total profits consist of its income and chargeable gains, less any qualifying charitable donations.

A company’s chargeable trading income is assessed in a similar way to the property income of an individual. However, interest payable on a loan for the purchase or improvement of property is dealt with under the loan relationship rules. Salford Tax Specialists ltd can assess your company requirements and advise accordingly.

A company’s main source of income for most companies is likely to be trading income but a company may also have other sources of income. These could be bank interest, loan interest or property income. In general terms , a company’s  income is computed in a broadly similar way to that of an individual . The main difference between the assessment of a company’s income and individual income can be explained in full and we can plan the most tax efficient route for you and your business.

For corporation tax purposes, a company means any corporate body or unincorporated association excluding partnerships. As well as limited companies, this definition includes clubs and societies , which are liable to corporation tax on income from non-members. Organisation that are generally exempt from corporation tax include registered charities and registered pension schemes subject to certain conditions and limits.