Corporation Tax Archives

Jun 08 2026

Loans To Directors: Tax Rate Increased

By admin Corporation Tax, Directors, HMRC, Loans, Potts & Co Accountancy & Business Advice News

An outstanding loan to a director or shareholder from a close company can trigger a tax charge under Section 455 of the Corporation Tax Act 2010. The director's loan account is generally used to account for temporary withdrawals from the business for the director's personal spending. However if the director…

Sep 25 2024

Corporation Tax Small Profits Rate

By admin Corporation Tax, HMRC, Potts & Co Accountancy & Business Advice News

Certain types of company are not eligible to apply the small profits rate for corporation tax, regardless of their profit levels. On 1 April 2023, the main Corporation Tax (CT) rate was increased from 19% to 25%. A small profits rate of 19% was introduced for companies with profits below…

Apr 02 2024

Capital Allowances For Partnerships

By admin Capital Allowance, Corporation Tax, Directors, HMRC, Potts & Co Accountancy & Business Advice News

HMRC has clarified the rules relating to capital allowances claims in mixed partnerships, confirming that all partners subject to corporation tax are eligible for enhanced capital allowances. Corporate taxpayers are entitled to certain accelerated capital allowances such as full-expensing and the super-deduction that are not available to individuals subject to…

Mar 28 2023

How To Cope With Corporation Tax Rise

By admin Budget Update, Corporation Tax, HMRC, National Insurance, Potts & Co Accountancy & Business Advice News

The Budget confirmed that the main rate of corporation tax will rise from 19% to 25% on 1 April 2023 but the small profits tax rate will stay at 19% where the company's profits do not exceed £50,000. The Chancellor failed to highlight that the effective marginal rate of corporation…

Nov 30 2022

Corporation Tax Up

By admin Corporation Tax, HMRC, IR35, Potts & Co Accountancy & Business Advice News

When the current Prime Minister was Chancellor he announced an increase in the main rate of corporation tax to 25% to apply to profits above £250,000 from 1 April 2023. Under the previous administration, this decision was reversed but the 25% rate will now apply next year. Companies with profits…

Oct 02 2022

Companies Spared Tax Rise

By admin Corporation Tax, HMRC, Potts & Co Accountancy & Business Advice News

Last year Chancellor Rishi Sunak proposed increasing corporation tax rates such that companies with annual profits of over £250,000 would pay tax at 25%. Those with annual profits of less than £50,000 would continue to pay tax at 19% but a marginal tax rate of around 26.5% would apply on…

Mar 13 2022

Declare Your COVID-19 Grants

By admin C.I.S., Coronavirus Job Retention Scheme (CJRS), Corporation Tax, Covid-19, Grants, HMRC, Potts & Co Accountancy & Business Advice News

The Covid-19 support grants (CJRS, SEISS and Eat Out to Help Out) are taxable and should be declared on your business' tax return. For corporation tax (CT) you must report amounts received in the accounting period covered by the return, not grants claimed for the period and paid in a…

Dec 18 2021

Paying Tax To Right Account

By admin Corporation Tax, HMRC, Income Tax, PAYE, Potts & Co Accountancy & Business Advice News, VAT

Your business probably pays several different taxes to HMRC: corporation tax or income tax; VAT; and PAYE all at different intervals. If the tax payment is not correctly accounted for by HMRC and set against the right tax account for your business an erroneous tax debt may arise. HMRC receives…

Sep 10 2021

How To Carry Back Corporate Losses

By admin Corporate Losses, Corporation Tax, Covid-19, HMRC, Potts & Co Accountancy & Business Advice News

If your company suffered badly under the Covid-19 pandemic you can at least claim a tax repayment where the accounts show a loss and the company made profits in earlier years. Where the loss exceeds the profit made in the previous year, the excess loss can be carried back to…

Mar 16 2021

Super Deduction for Capital Expenditure

By admin Budget Update, Capital Expenditure, Corporation Tax, HMRC, Potts & Co Accountancy & Business Advice News

Larger companies may have opted to wait until April 2023 before making major investments in plant or machinery to achieve tax relief of 25% on those costs following the increase in the corporation tax rate. However, the Government wants to encourage those companies to invest sooner so is offering a…

Corporation Tax