{"id":5178,"date":"2023-06-06T10:41:43","date_gmt":"2023-06-06T10:41:43","guid":{"rendered":"https:\/\/www.bainesjewitt.co.uk\/blog\/?p=5178"},"modified":"2023-06-06T10:41:44","modified_gmt":"2023-06-06T10:41:44","slug":"corporation-tax-upcoming-filing-deadlines-and-reminder-about-recent-amendments","status":"publish","type":"post","link":"https:\/\/www.bainesjewitt.co.uk\/blog\/corporation-tax-upcoming-filing-deadlines-and-reminder-about-recent-amendments\/","title":{"rendered":"Corporation Tax: Upcoming filing deadlines and reminder about recent amendments"},"content":{"rendered":"

Recent changes HM Revenue & Customs (HMRC) made to the rate of Corporation Tax mainly affected larger businesses in the UK.<\/span>\u00a0<\/span><\/p>\n

As of April 2023, companies that generate a profit of more than \u00a3250,000 during their accounting period will pay a rate of 25 per cent in Corporation Tax, an increase from the 19 per cent that it was previously.<\/span>\u00a0<\/span><\/p>\n

Smaller businesses that made a profit of \u00a350,000 or less still pay the previous rate of 19 per cent so the recent updates have no impact on them.\u00a0<\/span>\u00a0<\/span><\/p>\n

Businesses hovering between \u00a350,000 and \u00a3250,000 profits for their accounting periods should be entitled to marginal relief.\u00a0<\/span>\u00a0<\/span><\/p>\n

Marginal relief gradually increases the Corporation Tax rate between the 19 per cent smaller profits rate and the 25 per cent main rate.\u00a0<\/span>\u00a0<\/span><\/p>\n

Marginal relief means many businesses in this profit bracket will be able to avoid having to pay the full 25 per cent main rate.\u00a0<\/span>\u00a0<\/span><\/p>\n

Dividend payments<\/span><\/b>\u00a0<\/span><\/p>\n

The increase in Corporation Tax has added further complexity for large business owners who normally pay themselves and other shareholders in dividends to reduce the tax they pay.\u00a0<\/span>\u00a0<\/span><\/p>\n

This complexity has been compounded by HMRC\u2019s recent amendments to the dividend allowance, which has fallen from \u00a32,000 to \u00a31,000 as of 6 April 2023.<\/span>\u00a0<\/span><\/p>\n

It is now advised that larger business owners assess the number of dividends that they pay to avoid paying more tax than they need to.\u00a0<\/span>\u00a0<\/span><\/p>\n

Upcoming Corporation Tax filing deadlines<\/span><\/b>\u00a0<\/span><\/p>\n

Please read below for the upcoming Corporation Tax filing deadlines.\u00a0<\/span>\u00a0<\/span><\/p>\n