If you are operating:
- a registered company
- a members’ club, society or association
- a trade association
- a housing association, or
- a co-operative
The Corporation Tax Self Assessment system will apply to your organisation. This means that you will need to ensure the organisation lodges and pays tax on time (the corporate rate is 30%), ensure that you correctly operate Pay As You Earn (PAYE) and National Insurance Contributions for the organisation’s employees, as well as retaining sufficient records detailing and substantiating the organisation’s financial activities (HMRC requires these to be retained for at least six years after the relevant corporate tax return has been filed).
The company tax return must be filed within 12 months after then end of your accounting period, for instance, if your company’s accounting period ends on 31 March 2020, then the company must file its company tax return for that period before 1 April 2021.
However, the deadline for making any tax payments is before the filing date. For small companies any tax due must be paid 9 months after then end of the accounting period. In our example, the company whose accounting period ends on 31 March must pay any tax due by 31 December. For larger companies with annual profits greater than £1.5 million, tax payments must be made in quarterly instalments (although, quarterly payments will not apply in all cases).
Taxfile has the expertise and technology capability to manage your company’s (or association’s) tax affairs. Please get in touch with one of our friendly advisers for a free quote — phone 020 8761 8000.