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Corporation tax

Corporation tax is paid by limited companies on their profits. It is also paid by organisations including members' clubs, societies and associations, trade and housing associations and co-operatives.

In the 2011 Budget, Chancellor George Osborne signalled his intention to reduce corporation tax to make Britain a more attractive place to do business and introduced a main rate of 26 per cent for profits over £1.5 million from April 2011.

There will be further cuts in the main rate to 25 per cent in 2012-13, 24 per cent in 2013-14, and 23 per cent in 2014-15.

The small companies’ rate is 20 per cent for profits of up to £300,000 with marginal relief easing the transition between the lower and higher rates for companies making profits between £300,001 and £1.5 million.

Even with the government’s focus on reducing rates, corporation tax represents a significant overhead so it makes sense to seek the advice of experts in mitigating corporation tax liability.

We can advise on all the relevant reliefs and allowances and also assist with HM Revenue & Customs’ new requirements from April 2011 for online filing of company tax returns.

Also from 1 April 2011, accounts and computations must be in the Inline eXtensible Business Reporting Language (iXBRL) format, which is designed specifically for business financial reporting. Some companies and organisations that have previously prepared these submissions in Word or Excel may find more convenient and cost-effective to outsource this work our iXBRL-compliant service.

To find out more about how we can help you, or for a free, no obligation quote, please contact us.

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