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Corporation tax

Corporation Tax is a mandatory levy on the profits of limited companies, partnerships, and other corporate entities operating within the UK. Navigating the complexities of Corporation Tax compliance is crucial for businesses to meet their legal obligations, maximize tax efficiency, and avoid potential penalties.

 

At FTI, we provide a full range of Corporation Tax services, helping businesses of all sizes manage their tax affairs effectively and in line with current UK legislation.

 

Current Corporation Tax Rates (2023-24):

 

  • Main Rate: The main Corporation Tax rate for most companies in the UK is 25%, applicable to companies with profits over £250,000.

  • Small Profits Rate: Companies with profits of £50,000 or less pay a Corporation Tax rate of 19%.

  • Marginal Relief: For companies with profits between £50,001 and £250,000, Marginal Relief is applied, resulting in an effective tax rate between 19% and 25%. This relief helps taper the increase from the lower to the higher rate.

Our Comprehensive Services:

 

1. Corporation Tax Compliance
 

  • Preparation and submission of your Corporation Tax returns (CT600) to HMRC.
     

  • Calculation of your annual tax liability based on your company's financial performance.
     

  • Filing all required returns in compliance with HMRC deadlines to avoid penalties.
     

2. Tax Planning and Strategic Advice
 

  • We work with you to develop tax-efficient strategies to legally minimise your tax liabilities.
     

  • Advise on tax reliefs, allowances, and exemptions, including R&D tax credits, capital allowances, and group relief.
     

  • Strategic advice on tax planning for mergers, acquisitions, and other corporate transactions.
     

3. International Taxation and Transfer Pricing
 

  • Guidance on managing Corporation Tax for multinational companies, including cross-border tax issues, transfer pricing, and double taxation treaties.
     

  • Expertise in ensuring compliance with global tax regulations while maximising tax efficiency.
     

4. Tax Investigations and Disputes
 

  • Support during HMRC investigations or disputes, including assistance with enquiries into tax returns and other issues.
     

  • Proactive management of tax risk and implementation of processes to ensure continued compliance with changing legislation.
     

  • Assistance with capital gains tax (CGT) planning, dividend taxation, and related matters.

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  • Expertise & Knowledge: Our team of qualified tax professionals keeps up to date with the latest tax laws and regulations, ensuring your business stays compliant while minimising liabilities.

  • Customised Solutions: We understand that every business is different, which is why we offer customised tax advice and planning strategies to fit your specific circumstances.

  • Full-Service Offering: From filing tax returns to providing strategic advice on mergers, acquisitions, and international tax matters, we provide a comprehensive service to help you manage your Corporation Tax obligations seamlessly.

  • Risk Reduction: By staying compliant with all current UK tax regulations, you minimise the risk of investigations and costly penalties from HMRC.
     

Contact Us Today
 

Let FTI help you manage your Corporation Tax efficiently, saving you time, reducing your tax burden, and improving your overall financial position. Contact us today to discuss how our expert tax team can support your business.

Why Choose FTI for Corporation Tax?

Research and Development

Research and Development (R&D) tax relief supports companies that work on innovative projects in science and technology.

 

You may be able to claim Corporation Tax relief if your project meets the definition of R&D for tax purposes. The work that qualifies for R&D tax relief must be part of a specific project to make an advance in science or technology.

 

HMRC has recently changed the rules for claiming R&D relief and business should ensure that comply with the new requirements. At FTI, we have the expertise to guide you through the complexities of R&D claims, ensuring you maximise your entitlements while adhering to HMRC’s latest regulations.

R&D Intensive company:

Loss-making small or medium enterprises (SMEs) whose research and development (R&D) expenditure constitutes at least 40% (for expenditure incurred on or after 1 April 2023) or 30% (for accounting periods beginning on or after 1 April 2024) of total expenditure, referred to as ‘R&D intensive SMEs’.

 

Qualifying expenditure

 

Having established expenditure has been accounted for as R&D and the R&D activities fall within the guidelines, in order to be qualifying R&D expenditure, the expenditure must be:
 

  1. attributable to relevant R&D directly undertaken by the company or on its behalf (subject to the subcontracting rules; see below); and

  2. incurred on any of the following:

  • staff costs;

  • software and consumables;

  • externally provided workers;

  • payments to the subjects of a clinical trial; and

  • subcontracted R&D.
     

Qualifying expenditure on consumable items is limited to the cost of only those items fully used up or expended by the R&D activity itself and do not go on to be sold as part of a commercial product.
 

From 1 April 2023, expenditure on data, cloud computing and pure mathematics will be included as qualifying expenditure.

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