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The Importance of Corporation Tax

By October 12, 2017Blogs

With corporation tax being one of the hardest taxes to control, you need professional assistance to take hold of yours.

Here at Coleman and Co in Northern Ireland, we are set up to assist all of our clients with account management, tax control and so much more when it comes to their corporation. With corporation tax arising from April 2015 to 20% for profits of £300,000, your business could be facing serious charges and fines for any missed payments you could have.

Check Your Brackets

It always pays to make sure you know which bracket you fit into with your corporation taxes. Paying your corporation tax comes under the line of being a limited company, having a UK branch to a foreign business or owning a sports club etc. In order to find out your exact brackets, you need to work closely with the team here at Coleman and Co.

If you make £300,000 or less you are eligible to pay 20% corporation tax on your profits.

Start with Registration

Whenever you start out in business, you need to register for corporation tax. To do this you need to get in touch with the HMRC and start keeping records of all of your accounts. Working with Coleman and Co will give you an easier route of recording all of your documents, receipts, income and expenses so that when it comes to working out your corporation tax, it is more than straightforward.

Research Your Allowances and Reliefs

All businesses are subject to certain allowances and reliefs when it comes to running your business. Before tax, there are certain elements that you can deduct before accounts are created so that you can prepare your finances for what they should be exactly.

Capital Allowances – buying machinery, equipment for your business and using business vehicles can be claimed against

The Patent Box – if your business is able to make profit from patented inventions

Creative Industry Relief – if your business makes money from theatre, animated games and the creative industry

Marginal Relief – your business can claim marginal relief if your profits were between £300,000 and £1.5 million before April 1st 2015

Paying Your Corporation Tax

When it comes to paying your tax there are various methods in which you can make payment. As all deadlines are different, you need to be up to date with your own accounts with Coleman and Co so that you never miss a payment.

The taxable profits that you pay corporation tax on include any profit your business makes from business trades, investments and selling any of your assets for more than you paid. If you need to know more about this and need assistance with your own corporation tax, get in touch with Coleman and Co today.

eBay and Corporation Tax

There is also speculation around the credibility of tax in larger businesses and eBay is no stranger to this. In recent times, eBay only paid £1.6m in corporation tax although their US partner actually made £1bn in profits.

A spokesman from eBay spoke out to the BBC and said on record “In all countries and at all times, eBay is fully compliant with national, EU and international tax rules including those of the OECD, including the remittance of VAT to the appropriate authorities”, BBC.

With corporation tax constantly under scrutiny, it really is highly important that you get yours in order to avoid charges, bad press and faulty business accounts.

Get in Touch

To discuss your business brackets and corporation tax, get in touch today with Coleman and Co by calling us on 028 9266 3599.

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