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Important Corporation Tax Deadlines You Need to Know

Important Corporation Tax Deadlines You Need to Know

As a business owner in the UK, staying on top of your financial responsibilities is crucial, and one of the key obligations is filing your corporation tax return accurately and on time. In this blog post, we will delve into the important deadlines associated with corporation tax, including the filing of tax returns and when you will have to pay corporation tax instalments. Understanding these deadlines is essential to avoid penalties and ensure compliance with HM Revenue and Customs (HMRC).

When are corporation tax returns due?

As a business owner in the UK, staying on top of your financial responsibilities is crucial, and one of the key obligations is filing your corporation tax return accurately and on time. In this blog post, we will delve into the important deadlines associated with corporation tax, including the filing of tax returns and when you will have to pay corporation tax instalments. Understanding these deadlines is essential to avoid penalties and ensure compliance with HM Revenue and Customs (HMRC).

 

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what is a corporation tax accounting period?

An accounting period is a period for which a company prepares its financial statements. It usually aligns with the company’s financial year, which may or may not be the same as the calendar year.

Accounting periods differ as companies are set up and begin trading at different times of year. Accounting periods generally cannot be longer than twelve months, though there may be exceptions in the first year of business or when restarting a business. 

To check your accounting period, you can refer to your company’s annual accounts, which will indicate the start and end dates of your financial year. Alternatively, you can access this information from Companies House or consult your accountant for assistance.

 

When do i need to pay corporation tax?

Aside from filing your tax return, it is crucial to meet the deadlines for paying your corporation tax bill. The deadline for payment depends on your company’s size, with most companies falling into one of the following categories.

Small companies

If your company qualifies as a small company, with profits below £1.5 million, the deadline for paying your corporation tax bill is typically nine months and one day after the end of your accounting period. For example, if your accounting period ends on 31st December, the payment deadline would be 1st October of the following year.

Large companies

For larger companies with profits above £1.5 million, the corporation tax payment deadline is generally divided into four quarterly instalments. The first instalment is due six months and 13 days after the start of your accounting period, while the last three are due every 3 months thereafter.

It is important to note that these deadlines may vary depending on certain circumstances, such as companies with different accounting periods, accounting periods shorter than 12 months, or if your company’s taxable profits exceed £20 million.

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Working with a professional accounting firm like CIGMA Accounting can provide numerous benefits for your business. Not only can they help you stay on top of tax deadlines and avoid penalties, but they can also provide valuable financial advice and support.

Our experts at CIGMA are CIMA-registered Management Accountants. They specialise in working with businesses to form companies, create strategies, and making sure you’re on the right side of financial regulation.


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About the Author
Haroon Muhammad

Haroon Muhammad boasts 17 years of comprehensive experience in tax, financial services, and local government. His sheer love for tax drives his mission to save clients money and optimise their financial strategies. Haroon is dedicated to navigating complex financial landscapes with precision and delivering exceptional results for his clients.