corporation tax

[mwt.taylor88]

Hi All,

Is corporation tax a flat rate for all types of businesses? Is it 20% of Gross Profit?
Also when is it paid e.g. every month? every quarter?

I'm a opening a restaurant and looking at turning over £300,000 a year

many thanks

 

[faradaykeynes]

In your case it would be 20% on Taxable profit ( Net profit - tax allowances + disallowed expense) and is due to be paid by 9 months after year end

 

[mwt.taylor88]

Thanks

just trying to work through my cash flow forecast. So the corp tax is paid in one lump sum 9 months after year end? is corporation tax accounting year the same as company accounting year?

Do companies normally pay it at year end? why would companies wait until 9 months after?

 

[faradaykeynes]

You can pay on account payment for corporation any time, 9 months after company's year end is dead line to pay any CT due else HMRC charges interest

 

[mwt.taylor88]

is it paid in one lump sum?

 

[faradaykeynes]

No it does not have to be one lump sum as long it paid with in time, it can be instalments