Notifying the Inland Revenue

As a company, the profits are liable to corporation tax. Elsewhere on the website you can find tables showing the rates of tax payable.

The company has three months from the start of trading to notify the Inland Revenue that it has started to trade. We can assist with this procedure. Thereafter, a Corporation Tax Self Assessment return must be completed and filed with the Inland Revenue. Whilst very large companies must pay corporation tax on account as each financial year progresses, most companies must pay their corporation tax nine months and one day after the end of the financial year and must file the tax return within 12 months of the year end.

In order to calculate the company’s liability to corporation tax each, and in order to comply with the Companies Act 1985, accounts must be prepared. Unlike sole traders and partnerships there are specific rules and formats governing the accounts of limited companies and set timescales within which the accounts must be filed at Companies House. Those accounts must show the profit or loss for the year and, on the balance sheet, the assets and liabilities of the company, and must show a true and fair view.

The shareholders and the directors are separate from the company itself so those individuals may still have to complete personal tax returns if their circumstances warrant it.