Corporation Tax Basics
Introduction to Corporation Tax
When you invest through a limited company, that company is a separate legal entity from you personally. This means the company owns the properties, receives the rental income, and incurs the expenses.
The company pays corporation tax on its annual profits. While there are specific filings and key dates to remember each year, we manage the technical complexity so you can focus on growing your portfolio.
Corporate Tax Planning
Tax planning isn't about complex loopholes; it's about clarity and foresight for your property business. We help you understand exactly how your company profits are taxed, so there are no surprises when the bill arrives. We'll guide you on when a limited company structure is genuinely useful for your portfolio and how to manage your business efficiently. Our goal is to provide a calm, clear path for your investments to grow under a structure that works for you.
Compliance and Reporting
Annual Accounts
Every year, property companies prepare annual accounts summarising your rental performance. High-level compliance is key, as missing the filing deadline can trigger automatic penalties from Companies House and HMRC, which can grow quickly if filings are very late.
CT600 Return
We’ll help you file your CT600 Corporation Tax return. This form tells HMRC how much profit the company made and ensures you pay the correct amount of tax.
Tax Payment
Corporation tax has specific filing and payment dates. We manage these deadlines so you never miss a cut-off; staying ahead is key since missing a payment can trigger automatic penalties and costs that add up quickly.
Confirmation Statement
Each year, your property company needs to confirm its basic details with Companies House. It’s a simple annual status update to keep everything official.
Common Questions
Do I need a company for my rental?
Not necessarily. While a company structure can offer tax benefits for some, it also brings more administration. It really depends on your long-term goals and other income.
What happens if I miss a deadline?
Missing dates usually leads to automatic penalties from HMRC. We help you stay ahead of these with clear reminders so you can avoid unnecessary costs.
How do I pay my tax?
Corporation tax is paid directly to HMRC, usually online. Unlike personal tax, the payment is typically due before you file your company tax return.
Can I deduct expenses?
Yes, most costs that are purely for running your property business can be used to reduce your taxable profit, from repairs to professional fees.