Corporation Tax for limited companies
Companies pay corporation tax (CT) which is based on complex tax laws. Again we can help you with the preparation and filing of CT return.
Q: What is the deadline to file a CT return?
A: 12 months after year-end but any CT liability has to be paid earlier.
Q: Are dividends considered as an expense for the company?
A: No, dividends are paid post-tax profits and reserves.
Q: What if my director loan account is overdrawn at year-end?
A: There are certain rules when it comes to overdrawn director loan account at year-end. Generally, it has to be settled within 9 months after year-end to avoid further CT charge which is refundable eventually on the settlement of overdrawn director loan account.