{"id":175362,"date":"2022-08-29T02:38:54","date_gmt":"2022-08-29T01:38:54","guid":{"rendered":"https:\/\/legalvision.co.uk\/?p=175362"},"modified":"2025-07-02T00:40:02","modified_gmt":"2025-07-01T23:40:02","slug":"corporation-tax-assessment","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/corporations\/corporation-tax-assessment\/","title":{"rendered":"How is Corporation Tax Assessed in England?"},"content":{"rendered":"\n

As a business owner, you might wonder how Her Majesty\u2019s Revenue and Customs<\/a> (HMRC<\/em><\/strong>) assesses the amount of corporation tax you owe. This assessment differs from the tax rules HMRC applies to individuals and other business entities.\u00a0For example, corporations (and other incorporated entities<\/a>) must account for income, chargeable gains, and loss relief when determining their taxable income. This article will explain the rules that govern the corporation tax system so that you can get a better sense of what your company\u2019s tax liability<\/a> may be.\u00a0<\/p>\n\n\n\n

The Subject of Corporation Tax <\/h2>\n\n\n\n

Corporation tax only applies to companies (and certain other incorporated entities). Thus, it does not apply to you as a business owner. Instead, HMRC will look at your income profits and capital gains to determine your yearly tax liability.\u00a0<\/p>\n\n\n\n

The Company\u2019s Accounting Period <\/h2>\n\n\n\n

Your company is liable to account for any taxable income profits and chargeable gains that arise during its accounting period. The accounting period is a twelve-month period that the company is free to set for itself. For instance, it might be from 1 July to 31 June the following year. Any money it makes during this period is taxed as a single tax year.<\/p>\n\n\n\n

Importantly, your company\u2019s accounting period does not have to align with the financial year, which runs from 1 April to 31 March of the following year. However, where it does not align, your company may have to pay different tax rates, as the government might change these rates over separate financial years. The current corporate tax rate<\/a> is 19%. <\/p>\n\n\n\n\n\n Continue reading this article below the form\n <\/i>\n<\/a>\n

\n
\n Need legal advice?\n
\n \n Call 0808 196 8584<\/a> for urgent assistance.\n
\n Otherwise, complete this form, and we will contact you within one business day.\n <\/span>\n <\/div>\n\n \n\n
\n