Service Charge Accounts
What are Service Charge Accounts?
The corporate tax also goes by the name of corporation tax or company tax. It is a form of direct tax imposed on the income or capital of a corporation. Any similar legal entity is also subject to corporate tax.
It is essential to understand all the rules surrounding corporate tax. Different countries have different regulations for Corporate Tax.
Calculation of corporate tax is a difficult task that involves making a detailed account of all income spent and generated from a company. The type of business the company is involved in and other aspects of your business may entitle you to specific relief schemes in the final corporate tax but finding the best system for your company is time-consuming and is best left for a professional accountant to determine for you.
Many companies are not set-up in their home countries, and many have several branches all over the world. It is important to know under which jurisdiction each of those offices falls under and to whom the Corporate Tax must be paid to.
Filing for tax
Given the unique nature of each business and the diversity in laws all over the world, it is impossible to state precisely how a company should go about filing their corporate tax. Some countries may require you to pay another tax in addition to corporate tax. The procedure for filing taxes will be different for different companies which is why it is advised to have a dedicated professional accountant for dealing with a company’s Corporate Tax.
As a company grows over time a lot of related entities will also grow with the company. These changes will affect the final Corporate Tax that your business will have to pay at the end of your financial year.
In the UK, you pay Corporation Tax at the rates that are applied in your company’s accounting period for Corporation Tax. This accounting period cannot be longer than 12 months and is typically the same as the financial year covered by your company’s annual accounts. It is important to note here that this period may be different in the year you set up your business.
As with other forms of tax, Corporate Tax does not have a fixed deadline for all companies. The deadline depends on your company’s accounting period. If you receive a notice from the HMRC to deliver a company tax return, then you must send a return regardless of if you have made a loss or have no Corporation Tax to pay.
It is easy to miscalculate the final amount due if you are not a professional accountant specialised in the field of corporate tax. Miscalculating the tax amount can lead to substantial penalties in some countries and can even cause you to pay extra for missing the deadline.
In the UK, if you are late in filing a tax return, you will have to pay the penalty starting from the first day after the deadline. The penalty will increase the longer you surpass the period, and if a tax return was submitted six months overdue, HMRC will issue a ‘tax determination’ which would hold one liable for a certain percentage of their tax returns to be paid as a penalty in addition to the tax return due.
How we can help you
More Group has many professional accountants specialised in the field of Corporate Tax. Our accountants can help you manage and file your Corporate Tax and ensure that you never miss a deadline. More Group has many branches all over the world, so our accountants are familiar with the taxation laws in many countries.
We are experienced experts in the field of Corporate Tax and can ensure that your company gets a dedicated accountant to handle all your Corporate Tax needs. We make sure that you do not have to face the hassle of finding out which jurisdiction your company falls under and what laws and reliefs your company is entitled. We take care of all your tax needs so that you can focus on growing your business.
Contact us today for assistance with your corporation tax and to book a free consultation.
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