It is not just UK resident companies that have to pay UK corporation tax. Overseas entities conducting a business in the UK through a permanent establishment here will be liable too.
UK businesses benefit from an advantageous rate of corporation tax, currently at 20% but planned to reduce to 17% by 2020. Whilst a beneficial rate, the compliance and legislation are complex.
Therefore, you need to ensure that your structure is set up in such a way as to maximise any tax reliefs and to minimise any tax payable – this is something that should be considered as early in the planning process as possible.
Key timings that you need to consider to ensure you comply with the regulations are:
- Corporation tax is normally due nine months and one day after the end of the accounting period although larger companies pay their tax by quarterly instalments;
- A company must file a corporation tax return within 12 months of the end of its accounting period. Penalties apply for late filing.
We can help you through this and can provide assistance in the following areas:
- Corporate tax planning and compliance
- Inward investment (including branches of overseas companies)
- Tax accounting and tax disclosure for audit (including Fin 48 studies)
- Tax risk management
- Enquiries and compliance checks
- Transfer Pricing
- Structuring (UK and international, inbound, outbound and hybrid)
- Partnership tax
- Capital Allowances
To contact a member of the team, please click here.