How to Pay Your Corporate Tax Bill in the United Kingdom

As part of running a business, paying your corporate tax bill in the UK is one of your financial obligations. No matter your business size, it is your responsibility to ensure you meet the local compliance regulations and manage your tax payments.

 

The Necessity of Corporate Tax Payments

Every locally based company needs to contend with a corporate tax bill in the UK. In the corporate tax system, taxes are levied on the profits generated by your company. In the UK, HM Revenue and Customs (HMRC) is the tax authority responsible for corporate tax regulations.

 

How Much Is the Corporate Tax Bill in the UK?

The standard corporate tax rate in the UK is 19%. However, different companies with certain types of income will have different rates. For example, financial institutions like banks and building societies must pay 27.5% in corporate tax rates.

 

How to Meet Your Tax Obligations

To stay compliant, you must maintain accurate financial records of your business at all times. You must prepare annual financial statements and calculate your taxable profits, which must be reported to HMRC annually. 3E Accounting can handle this for you through our Corporate Tax Services.

Once you have submitted your financial statements, you must pay any tax that is owed. The deadline for your payments depends on your accounting period. Generally, payments must be made within nine months and one day after the accounting period ends.

Taxes can be paid via online bank transfers, direct debit, debit, or credit card payments. For convenience, payments can be made through HMRC’s secure payment portal. Should you fail to meet your tax obligations, penalties will apply. The severity of these penalties depends on the severity of the non-compliance. They could range from financial penalties to criminal charges.

 

Are There Any Tax Incentives Available?

Yes, tax incentives are available. The Government has offered these to encourage growth and investment. Among the available incentives are Enterprise Investment Schemes (EIS), capital allowances, and Research & Development Tax Credits (R&D). These incentives could help offset the sum you pay for your corporate tax bill.

 

Let Us Help You Meet Your Tax Obligations

At 3E Accounting, we offer various corporate services to help you manage and meet your tax responsibilities. We help you oversee these details so you don’t have to worry about it, especially when corporate taxes are something that demand attention to detail and strategic planning. You have enough to handle as it is with running a successful business.

Let us take care of that business for you. For more information about our UK Corporate Tax Services, contact us.