Corporate tax planning is an important, but often overlooked part of a business’s annual plans.

Most businesses,  think that corporate tax is simply a calculation at the end of the normal accounts process, and that you need expensive advisors and large management boards before even bothering trying to make it efficient as possible.

At Hamlyns we don’t do complicated tax avoidance schemes, rather we prefer to think about the effects of corporate tax as part of your future business plans.

We can help, as part of your financial planning, suggest ways that you can gain the maximum relief.

If you’d like to know more, or need advice please contact us.

What is Corporation Tax?

Corporation tax is the tax that companies pay on their profits, instead of income tax or national insurance.

What is the rate of Corporation Tax in the UK?

For the 2018/19 tax year the rate of corporation tax in the UK is 19%.

What do you pay Corporation Tax on?

Corporation tax is calculated at the relevant corporation tax rate (or pro-rated rates if the company’s financial year straddles the tax year) on the company’s profit at the end of it’s financial year, after adding back disallowed expenses such as depreciation, and deducting capital allowances.

Do small businesses pay Corporation Tax?

Yes, all limited companies are subject to the corporate tax regime in the UK, though they may not have any tax to pay if the company has made a loss, or has carried forward losses from previous years. Though, unincorporated businesses, such as partnerships, LLPs and sole traders pay income tax rather than corporation tax, which has different rates and rules.

Do you pay Corporation Tax on a loss?

No, generally speaking you will not pay corporation tax on a trading loss, however if your loss has been generated by things like high depreciation rates or through losses on sales of plant and machinery and other fixed assets. There may be other instances where you have an accounting loss but not a taxable loss.

When should I pay Corporation Tax?

Generally our corporation tax must be paid 9 months and 1 day after your company’s year end. For example, a company with a year end of 31 March must pay it’s tax by 1 January the following year. Large companies, generally with profits above £1.5m have to pay corporation tax in instalments.

How do I pay my Corporation Tax?

You can pay your corporation tax online by debit or corporate credit card, BACS and CHAPS transfer using internet banking, or set up a direct debit. In exceptional circumstances HMRC may agree payment plans for settling corporation tax.

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Why Choose Hamlyns?

Personalised Service

We take a unified and unique approach to accountancy; providing an individual service to our clients

Time & Dedication

We take the time to offer proactive and innovative advice that help our clients achieve their long-term goals

Holistic Approach

Our holistic approach offers a combination of professionalism, a personal touch and attention to detail

Quality Assurance

Every one of our professional team is a member of one or more of the ICAEW or the ACCA

What Our Clients Say

Hamlyns treat me as an individual. I don’t feel like “just another client” to be processed.

Diana Boulter
MD, DBA Speakers

Chris and his team gave us precisely the advice our business needed, even before we knew we needed it!

Mike Higgins
Managing Director, Hawkmoor Limited

It’s great that I always get to speak to the same Partner who knows our situation, so I don’t need to keep repeating things.

Johnny Richards
Finance Director, Normandy Garage

When we came to Hamlyns, we were a start up business. In a few years, they’ve really helped us become a major player in our sector.

Frank Pawley MBE
Chairman, Global Travel Management Ltd

We have been working together for over 10 years and our relationship is vital to the success of our business; I would not hesitate to recommend them.

Angela Hall
Partner, Occupational Health Professionals LLP

I appreciate Hamlyns expert and informed guidance and helpful approach.

Managing Director, Arcom IT

Hamlyns took the stress away by anticipating and understanding what I needed.

Managing Director, PromoLogistics Limited

Hamlyns gave me great advice and hand-holding to ensure my exit from the company was quick and clean. I am also thousands of pounds better off. Thank you, thank you.

Douglas Cooke
Former Director