Who Is Subject to Corporation Tax?
Companies
Limited companies. This includes private companies limited by shares (most small companies), public limited companies (have shares listed on a stock exchange) and companies limited by guarantee (a legal entity used by non-profit organisations).
Unincorporated Organisations
Unincorporated organisations. This includes Charitable Trusts, Friendly societies, registered charities, which are not registered as companies .
UK Branches of Foreign Companies
UK Branches of Foreign Companies
A foreign company with a UK branch. This is a company which is not based in the UK but operates in the UK through a branch or office. Corporation tax will only be payable on the taxable profits arising from the UK operations.
What Should Organisations Subject to Corporation Tax Do?
What Are the Penalties for Corporation Tax Non Compliance?
Late Payment Penalties
Interest will be charged on the tax due daily until it is paid.
Penalties for Inaccurate Company Tax Returns
The penalty will be based on a percentage of the extra tax due when the correction is made. It is also dependent on the type of error and when HMRC was notified of it.
If you took reasonable care but still made a mistake, HMRC will not charge a penalty.
Disclaimer
