Corporation Tax
Corporation Tax
Like regular income tax, corporation tax is applied to a company's taxable income or profits. Companies are under obligation to inform HM Revenue and Customs that they exist and that they are liable to tax. They then have to:
- Work out their own tax liability
- Pay their tax without prior assessment by the Inland Revenue
- Pay penalties if they do not deliver their tax return by the statutory filing date (normally 12 months after the end of the accounting period)
Companies subject to tax include:
- Members' clubs, societies and associations
- Trade associations
- Housing associations
- Groups of individuals carrying on a business but not as a partnership (e.g. cooperatives)
Corporation tax rates vary depending on the size of the company, such as standard companies, small companies, marginal small companies and unit trusts and open-ended investment companies.