Over one million companies* look set to benefit from reductions in Corporation Tax scheduled until the year 2020.
The Corporation Tax main rate commencing April 1, 2017 has been set at 19%; dropping to 17% for the financial year beginning April 1, 2020.
Corporation Tax must be paid by the following businesses:
- Limited company
- Any foreign company with a UK branch or office
- A club, co-operative or other unincorporated association, e.g. a community group or sports club
“You don’t receive a bill for Corporation Tax, the amount you owe is worked out by completing a Corporation Tax Return (CT600),” said Peter Way-Rider, tax manager at Ellis & Co.
“We prepare and submit hundreds of these documents every year, you will receive a penalty for inaccurate or late returns; therefore it important it is filed correctly.
“This drop in Corporation Tax is great news for businesses and for the UK - which will have the lowest Corporation Tax in the G20 by 2020.”
For further information about Corporation Tax, or any other Tax matter contact Peter on 01244 343504.
*HM Revenue & Customs