For You Company
a Self Employer
Our company can help you with registration as a self employer. Please see our service. Setting up as a self-employed sole trader is the simplest and quickest way to start a one-person business.
LTD Company Registration
Now with our company you can register your LTD company within 6-8 hours. This is on line registration. Your company will be register with your choice of companies’ officers and address. Price starts from £25.00!
PLC Company within 6-8h
Our company will form your PLC company within 6-8 hours. This is on line registration. Your company will be register with your choice all company officers and address. There is only one application to fill out.
Why not a LLP?
Our company will help you to register Limited Liability Partnership. Formation usually takes 7 days. Your company will be register with your choice all company members and address.
Our company will support your company in accountancy and bookkeeping
service. We will care about your TAX, VAT Return. We will process your payrolls, vat applications. We will take care about your finance. Let us help you.
Registered Address Service
Our company offers prestigious street address in central London that can provide a polished image for your business and allow you to keep your business and personal lives separate. If you do not have UK address this is perfect solution for you.
Nominee Secretary Service
ABS can provide a nominee company secretary for your private limited company. The nominee company secretary service is ideal for sole directors unable to find someone to take on this role.
Apostille and Legalization
Do you need special documents certify by Companies House with apostille legalization. Please review our service.
If you wish we can register your company for VAT on your behalf, by using the VAT Online Registration Service.
Corporation tax is paid by limited companies on their profits. Corporation tax is not payable by the self-employed but does apply to the following organisations, even if they are not limited companies:
- members' clubs, societies and associations
- trade associations
- housing associations
- groups of individuals carrying on a business but not as a partnership, eg co-operatives
This guide will explain more about the tax and how it is calculated.
Corporation tax: what you need to do?
If your company is liable to pay corporation tax on your profits, there are several things you must do:
- Tell HM Revenue & Customs (HMRC) that your company exists and that it is liable for tax.
- File a self-assessment Company Tax Return for your company, on which you calculate your own corporation tax liability and pay it without prior assessment by HMRC.
- Keep records of all company expenditure and income in order to work out your tax liability accurately.
If you don't let HMRC know that you are liable for corporation tax, file
your Company Tax Return incorrectly, or pay your corporation tax late, you
may incur a financial penalty. To avoid penalties and interest charges you
should know your:
- statutory filing date - the date by which your company tax return must be received by HMRC
- normal due date - the date by which you must pay your corporation tax.
Calculating corporation tax
If your company is liable for corporation tax, you must work out how much is owed and supply that information to HM Revenue & Customs (HMRC) on a self-assessment Company Tax Return form (CT600).
In order to calculate how much is owed, you need to know:
- how much taxable profit you made in the accounting period covered by your Company Tax Return
- profit on chargeable gains
- capital allowances.
Chargeable gains are the profit you make when you sell or otherwise dispose of any asset owned and used by the business, not being items which are bought and sold as part of the normal trade.
Companies are not generally liable to capital gains tax. Instead they are liable to corporation tax on their net chargeable gains.
When calculating the profit chargeable to corporation tax you can claim capital allowances for certain items of equipment and apparatus purchased for use in the business. To find out more, see our guide on
Rates of corporation tax
There are two rates of corporation tax.
- the small companies' rate 19 per cent
- the main rate 30 per cent
Corporation tax rate
Level of profit on which rate is charged
2006/07 rates and allowances
Small companies' rate
On profits of £0-£300,000
19 per cent
Marginal small companies' relief
On profits of £300,001 - £1,500,000
30 per cent less relief.
The relief is £1,500,000 minus the amount of profits multiplied by 11/400
On profits of £1 500 001 and above
30 per cent
Note: if your company is an associated company, ie it controls or is controlled by another company, then the profit levels shown in the table above may be reduced.
The 0 per cent starting rate was abolished from 6 April 2006 and was replaced with the single small companies' rate of 19 per cent.
Keeping records for corporation tax
To calculate your liability for corporation tax, you are legally obliged to keep "sufficient" records of your outgoings and income to make a complete and correct Company Tax Return.
Sufficient records include:
- details of all receipts and expenses incurred in the course of your company's activities
- details of all sales and purchases made in the course of trade, if your company has a trade that involves dealing in goods
- all other supporting documents.
The precise records your company needs to keep will depend on the type and size of your business, but the records must be adequate to enable you to send in a correct Company Tax Return. For tax purposes, HM Revenue & Customs (HMRC) requires any organisation treated as a company to keep its records for at least six years from the end of your accounting period.
In certain circumstances, such as a late tax return or an HMRC enquiry, your company may need to keep records longer than the six-year period. If your company does not keep records, HMRC can charge a penalty of up to £3,000.
Corporation tax: deadlines and penalties
Your company is responsible for calculating how much corporation tax it owes and for paying corporation tax on time. Failure to do so can incur a financial penalty. A company can send in its Company Tax Return at any time after the end of its accounting period but must do so no later than the statutory filing date. This is the later of:
- 12 months after the end of your company's accounting period
- three months after your company receives a "notice to deliver a Company Tax Return form CT600" from HM Revenue & Customs (HMRC)
If your company fails to send its Company Tax Return on time, it will be charged penalties, depending on how late it is. If the return is regularly late, the penalties increase. HMRC may also charge a tax-related penalty if the tax return is incorrect or if your company fails to tell HMRC of its liability for corporation tax.
Payment of the corporation tax itself is due exactly nine months and one day after what is called your normal due date. For most companies, the normal due date is the last day of the accounting period. So if a company's tax return covers the accounting period 1 January 2004 to 31 December 2004, then the corporation tax should be paid no later than 1 September 2005. If corporation tax is paid late, interest will be charged and a penalty for late payment may be charged.