Corporation Tax
Corporation Tax
Corporation Tax involves considerably more than applying a tax rate to the profit shown in a company's annual accounts. Accounting profit and taxable profit can be very different figures, with numerous adjustments potentially required before a company's Corporation Tax position can be established.
MBS Accounting Services provides Corporation Tax return preparation and compliance support to UK limited companies, helping directors understand their company's tax position and meet the relevant filing and payment requirements.
As part of the year-end process, we can prepare the supporting Corporation Tax computation, reconciling the company's reported accounting profit with its taxable profit and identifying the relevant adjustments.
These can include depreciation, capital expenditure, disallowable expenditure, business entertainment, provisions, accruals, pension contributions and other expenditure where the accounting and taxation treatment may differ.
Capital expenditure is an important area to consider. Depending upon the type of asset purchased and the circumstances of the business, expenditure may qualify for capital allowances or other available deductions. The timing and classification of expenditure can therefore affect both taxable profits and the timing of the resulting Corporation Tax liability.
We can also help businesses understand the potential tax implications of directors' remuneration, dividends, pension contributions and other methods of extracting or retaining profits within a company.
Where businesses have common ownership or control, consideration may also need to be given to the associated-company rules and the potential impact these can have on the applicable Corporation Tax thresholds and calculations.
Tax losses can also require careful consideration, particularly where a business has experienced fluctuating profitability or undergone significant changes.
Importantly, Corporation Tax should not only be considered after the financial year has ended. Estimating future liabilities allows directors to incorporate expected tax payments into their cash-flow planning and avoid unnecessary surprises.
Our approach combines accurate financial information, careful preparation and practical tax planning support.
Where particularly complex transactions or specialist tax matters arise, we will recommend that appropriate specialist advice is obtained.
The objective is straightforward: to help businesses understand their Corporation Tax position, meet their obligations and make legitimate use of the allowances and reliefs available to them.