At One Click Accountant, we can provide you with accurate, valuable and in-depth advice on reducing your tax liabilities whilst remaining wholly compliant with HMRC legislation. The corporation tax rate for businesses operating in the UK is set at 19% in 2020. According to HMRC, the Corporation Tax main rate for the financial year 2020 will have effect from 1 April 2020 to 31 March 2021. The charge to Corporation Tax and the main rate will also be set at 19% for the financial year beginning 1 April 2021.
Companies in the UK are tasked with estimating their own tax liabilities and paying them by the due date. The due date is nine months and a day after the end of a company’s accounting period in most cases. Tax returns must be filed with HMRC within a year of your company’s year-end.
What happens if I pay late? How can I reduce my liabilities?
If you pay your corporation tax late, you will be charged interest. Late filing of tax returns also comes with penalties. You may be able to reduce your current tax liabilities by doing the following:
- Bringing forward expenditure scheduled for the following tax year.
- Claiming a 100% first-year allowance when you buy certain eco-friendly equipment for your business
- Receiving capital allowances on the full purchase price of certain hire and lease purchase good even when only the deposit has been paid.
- Claiming rollover relief when you buy chargeable business assets three years after or one year before selling certain business assets.
- Claiming relief on assets that are now worthless and deferring capital gains to a later date.
Everybody’s individual circumstances are different, so we would advise you to get in touch to discuss your specific situation.
Why One Click Accountant?
At One Click Accountant, we have more than 20 years experience in the contractor services sector and are able to offer dedicated account management for each of our clients. We offer some of the most competitive fees and margins on the market and can provide our clients with free cloud-based software to help them remain in the loop when it comes to accountancy and tax. We are a client-driven enterprise and put you at the forefront of everything we do.