How and When to Register for Corporation Tax with HMRC

Register for Corporation Tax with HMRC

Corporation Tax is a key obligation for UK businesses, and it is essential to understand how and when to register with HMRC. This guide will walk you through the process, explaining everything from eligibility to the steps you need to take to register for Corporation Tax with HMRC, along with penalties if you fail to comply.

What is Corporation Tax?

Corporation Tax is a tax levied on the profits of limited companies and some organizations, including clubs, societies, and charities in the UK. If you run a business or any legal entity that operates as a company and earns taxable profits, you must pay Corporation Tax to HMRC.

Who Needs to Register for Corporation Tax with HMRC?

Any business incorporated as a limited company in the UK needs to register for Corporation Tax with HMRC. Even if the company is dormant and hasn’t started trading, registration is required once the company begins any form of business operations, whether it’s selling products, providing services, or earning income through any other means.

When to Register for Corporation Tax?

You must register for Corporation Tax with HMRC within three months of starting any business activities. These activities include buying, selling, advertising, renting premises, or employing staff. If you fail to register within this period, HMRC may impose penalties.

How to Register for Corporation Tax

Follow these simple steps to complete your HMRC online registration

Step 1: Prepare the Required Information

Before you begin the registration process, ensure you have all the necessary details:

• Company name and registered office address
• Company registration number
• Date of incorporation and start of business activities
• Type of business and main activities

Step 2: Set Up a Government Gateway Account

To register for Corporation Tax with HMRC, you’ll need a Government Gateway account. If you don’t have one, you can create it online by providing basic company information and creating login credentials.

Step 3: Register for Corporation Tax Online

Once the Government Gateway account is set up, log in to the HMRC system, and register your company for Corporation Tax. This step will require your Corporation Tax sign-in details and information gathered in Step 1.

Step 4: Receive Your Unique Taxpayer Reference (UTR)

After registration, HMRC will send you a Unique Taxpayer Reference (UTR) by post. You’ll need this number to file your corporation tax return and to manage your tax affairs.

What Happens After Registration?

Once registered for Corporation Tax with HMRC, you need to comply with several obligations.

1. File Your Company Tax Return

You must file a limited company tax return example (CT600) every year, detailing your company’s income, expenses, and tax liabilities. This is essential for calculating how much Corporation Tax you owe.

2. Pay Your Corporation Tax

Once you file your company’s tax return, you’ll need to pay Corporation Tax based on your profits. Payments are usually due nine months and one day after the end of your accounting period.

3. Maintain Accurate Records

You must keep accurate financial records, including invoices, receipts, and bank statements, for at least six years. These records will support your Corporation Tax return.

Penalties for Failing to Register

Failure to register for Corporation Tax with HMRC can lead to penalties:

• Late registration: Penalties start from £100, increasing the longer you delay.
• Failure to file a return: If you fail to submit your tax return on time, you may face penalties and interest on the unpaid tax.

HMRC contact number Corporation Tax: If you have any issues with your registration or need further assistance, you can reach HMRC by phone at 0300 200 3410.

Example Table: Deadlines and Penalties for Corporation Tax Registration