Business owner in woodwork shop in plaid shirt on laptop | How to register for Corporation Tax

Contents

  1. 1. Do I need to register for Corporation Tax?
  2. 2. How to register for Corporation Tax
  3. 3. After you register for Corporation Tax

How to register for Corporation Tax

February 23, 2023
If you’ve recently registered your small business as a limited company, you’ll find there’s a bit more paperwork that comes with your new company status.
Instead of filing a Self Assessment tax return, you’ll need to file a Corporation Tax return to report your company’s taxable profits — but before you can do this, you’ll need to register your new business for Corporation Tax.

If you’re not sure where to begin, this article has you covered. We’ll be diving into how to register for Corporation Tax, a step-by-step guide of the registration process, and what happens after you’ve registered.

Do I need to register for Corporation Tax?

You’ll need to register for Corporation Tax with HM Revenue and Customs (HMRC) within the 3 months of starting any of the following business activity:
    Buying and selling goods and servicesAdvertisingRenting or buying property for business purposesEmploying peopleManaging investmentsEarning interestReceiving any other income
If you carry out these activities, HMRC considers your business to be active for Corporation Tax purposes. This means that if you’ve already started trading and haven't registered yet, you'll need to do so as soon as possible to avoid any penalties from HMRC.
However, if you’re a self-employed sole trader or in a partnership, you won’t need to worry about registering for Corporation Tax. Instead, you’ll pay your Income Tax and National Insurance contributions (NICs) when you file you Self Assessment tax return.

It’s worth noting that most companies register for Corporation Tax and PAYE at the same time as registering their new businesses with Companies House. However, you’ll need to register for Corporation Tax by following the steps below if you registered:
    With Companies House, but didn’t register for Corporation Tax at the same timeBy postUsing an agentUsing third-party software

How to register for Corporation Tax

Gather your business information

Before you can register for Corporation Tax, you’ll need to have the following information close to hand:

Sign into your business tax account to register

From here, you can take the following steps to register for Corporation Tax:
    Log in to your Government Gateway accountSelect 'Services you can add'Select 'Register for Corporation Tax'Follow the on-screen instructions and provide the information requested
If you didn’t get your company’s UTR number when registering your business, you can request it over at GOV.UK

When registering, you’ll need to tell HMRC the date you started doing business, as your company’s first accounting period will start from this date, and the date your annual accounts are made up to.

After you register for Corporation Tax

Once you're registered for Corporation Tax, you’ll be sent a welcome pack, outlining your tax payment deadlines and how to submit your company tax return. Using your Government Gateway user ID and password, you can also log into HMRC’s online services to file your company tax return or to make a payment.
If you’re not sure how much Corporation Tax you owe or what the Corporation Tax rates look like for the tax year ahead, check out our guide on how to pay Corporation Tax.

You'll need to keep accurate records of your income and expenses to determine your Corporation Tax bill for the tax year in question. Be sure to keep details of:
    Annual accounts, including your income statementBank statements, paying in slips, cheque books and electronic transfersCash books and other account booksPurchase and sales invoicesCredit or debit notes (issued or received)Order and delivery notesRecords of daily takingsPayroll recordsVAT (Value Added Tax) records

Rachel Cameron-Potter
Rachel Cameron-PotterContent Marketer

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