Our specialists can assist in a range of VAT & Tax areas

Calculating corporation tax isn’t always straightforward. Its rules are sometimes confusing, especially in relation to identifying allowances and reliefs. Deeks VAT Consultancy can provide the in-depth knowledge required to help companies negotiate their corporation tax liabilities. 

What is corporation tax?

Corporation tax is paid by businesses on any profits they make during the year. It has to be reported annually, and is calculated for the same 12-month period as annual accounts.  There are specific profits on which tax must be paid, which aren’t always obvious, especially for companies working internationally. 

Anyone starting or restarting business operations must register for corporation tax, and unincorporated associations who may be liable must write to HMRC for guidance.

Who is liable to pay corporation tax?

Liability for corporation tax applies to: 

•     limited companies 
•     foreign companies who operate a UK branch or office 
•     unincorporated associations, co-operatives and clubs, such as a sports club or community group 

Companies based in the UK are liable for corporation tax on all profits, whether these are derived from UK activities or abroad. Companies based outside the UK who operate through a UK branch or office are also liable for corporation tax, but only on profits derived from UK activities. 

What company profits are liable for corporation tax? 

 Profits that are liable for corporation tax aren’t limited only to trading profits, or the money made by doing business. They also include any financial gains realised by investments, or from the sale of assets at a higher price than their original cost. 

On the upside, some specific expenses are deductible, and overall liability can be reduced with various allowances. These include such items as R&D development and staff training. 

At Deeks VAT Consultancy, our team of knowledgeable tax advisers have considerable experience in corporate affairs. We can assist in calculating corporation tax liabilities, preparing appropriate tax returns and filing them within the required deadlines.