Corporation Tax Part 3
Paul from Michael Paul Accountants Northamptonshire completes a series of articles regarding Corporation Tax. This is part 3 and explains Corporation Tax accounting periods.
A company or organistion will pay Corporation Tax on it’s taxable profits for each Corporation Tax accounting period.
An accounting period for Corporation Tax purposes is normally 12 months long and will usually match the company/organisations 12 month financial year (the period covered by the company’s statutory accounts).
There are some circumstances in which the Corporation Tax period won’t be the same as the company’s financial year. An example of this would be where the financial year is longer than 12 months. A Corporation Tax accounting period can never be longer than 12 months so if the company’s financial year is longer than 12 months two Corporation Tax returns will need to be filed. The first will cover the first 12 months of trading and the second will cover the rest of the period.
A Corporation Tax return period can therefore be less than 12 months so if the company’s accounts cover a period of less than 12 months only one Corporation Tax return needs to be filed.
At Michael Paul Accountants Kettering, Corby, Northampton and Market Harborough are conveniently located near to our premises in Lamport although we have clients from all over the UK. We are a firm of Chartered Certified Accountants ensuring you receive a professional and competent service at all times.
If you need any advice regarding Corporation Tax or any other accounting or taxation matters please don’t hesitate to contact us.