Corporation Tax is a tax on the taxable profits of limited companies and other organisations including clubs, societies, associations and other unincorporated bodies. If your company incorporated, the companies house inform to HMRC for activate your tax period.
HMRC uses the information whatever they receive from Companies House to set up a computer record for your company and allocates it a reference number known as a Unique Taxpayer Reference (UTR). They then send form CT41G (Corporation Tax – Information for New Companies) to your company’s registered office. This form includes your company’s UTR .
You have to keep this UTR number also you need to inform to MSR Accountants for their record and account submission.
Your Company Financial year
For Corporation Tax, the tax year is called the ‘financial year’ or ‘fiscal year’ and runs from 1 April to 31 March. This is different from the tax year for individual taxpayers, which runs from 6 April to 5 April.
Accounting period And Corporation Tax
Your company pays Corporation Tax on taxable profits for each Corporation Tax accounting period, which is normally 12 months long and normally matches your company’s financial year.
However, certain events or changes of circumstances can cause accounting periods to change. You cannot choose your Corporation Tax accounting period. If your accounting period doesn’t run from 1 April to 31 March and spans two Corporation Tax financial years, you’ll need to apportion your company’s taxable profits between the two financial years on a time basis.
if your company’s Corporation Tax accounting period runs from 1 July 2012 to 30 June 2013: The first nine months (274 days) fall into Corporation Tax financial year 2012 (from 1 April 2012 to 31 March 2013). So you’ll pay tax on 274/365th of your taxable profit at the financial year 2012 rates.
The remaining three months (91 days) fall into the financial year 2013 (from 1 April 2013 to 31 March 2014). So you’ll pay tax on 91/365th of your taxable profit at the financial year 2014 rates.
Question & Answer
My company is dormant. Do I have to submit a Company Tax Return online?
Where can I find my Company Unique Taxpayer Reference (UTR)?
You’ll have a specific reference for the accounting period you are making payment for. So it’s important that you quote it exactly. The reference number is made up of 17 characters, for example: 1234567890A00199A.
How do check your CT UTR Number is correct?
Where do I get help to file my CT Return online?
How do I pay my Corporation Tax online and make sure my payment is allocated correctly?
To pay your Corporation Tax you will need to use your 17 character reference number. For example 1234005678A00101A. You can find your reference number:
- in your Corporation Tax Online account
- on the payslip HMRC sends you