A:Every company is legally bound to keep extensive records of its assets and liabilities, (ie income, expenditures). They will help you or your accountant when you submit the annual accounts, so keep them safe!

A:You’ll usually receive a letter from HMRC informing you that your company tax return is due. This is known as a ‘notice to deliver a company tax return’. If you have received this and you fail to file your return on time, your company will be subject to a flat rate penalty of £100. If you overrun by 3 months, you’ll be charged a further £100 penalty. If tax returns are consecutively late for 3 or more accounting periods, this penalty increases to £500 with an additional £500 charged if you file your return more than 3 months late.  These penalties escalate significantly the later you file your tax return.

A:Tax bills are determined by what profit you make as a business. This is basically all you have earned minus any business expenditure you have incurred.

A:Any expenses that are directly related to running your company. Examples of this include:

1. Office & workspace costs: Rent, utilities, office supplies, cleaning, and home office proportion (if working from home).
2. Staff costs: Salaries, wages, bonuses, pensions.
3. Professional services: Accountancy, legal, and consultancy fees.
4. Travel & vehicle costs: Business travel, mileage (for personal vehicles used for business), parking
5. Marketing & advertising: Website costs, online ads, printed materials, social media promotion.
6. Software & subscriptions: Business software, cloud services, and industry-specific subscriptions.
7. Insurance: Business insurance, professional indemnity, and public liability.
8. Training & development: Courses, seminars, or certifications directly related to the business.
9. Banking & finance: Bank fees, merchant fees, and interest on business loans.

A:Our trusted accountant has extensive experience in this area and can assist you with obtaining a Certificate of Residence from HMRC, ensuring all necessary documentation is prepared and submitted correctly.

Contact us to get a certificate of residence from HM Revenue & Customs.

A:What is a Corporation Tax? Corporation tax is a tax levied in the United Kingdom on the taxable profits made by limited companies and other organisations including clubs, societies, associations and other unincorporated bodies.

How much corporation tax does my business pay?

• Corporation Tax is calculated on taxable profits (after allowable business expenses).
• Main rate (2024/25 tax year): 25% on taxable profits.
• Small profits rate: 19% if profits are £50,000 or less.
• Marginal relief: If profits are between £50,001 and £250,000, you pay a rate between 19% and 25% (calculated using HMRC’s marginal relief formula).

Corporation Tax return:

• Your company must file a CT600 return and pay the tax within 9 months and 1 day of the end of its accounting period.
• Late filing or late payment can result in penalties and interest.

A:Self Assessment is for individuals to report and pay income tax directly to HMRC. Instead of your tax being deducted entirely through PAYE (Pay As You Earn), you complete a Self Assessment tax return each year to declare all your income and gains.

How it works:

You provide details of your income, expenses, and reliefs on the tax return. HMRC then calculates how much tax and National Insurance you owe—or how much refund you are due.

A:Balance sheets are basically a summary of the financial dealings of a company or individual. This may be a business partnership, corporation, PLC (private limited company) or a sole ownership.

A:These are the financial statements of a company, showing their revenues, costs and expenses which have been incurred during a set time, usually over a quarterly or yearly period. They provide comprehensive information about whether a firm can generate profit by increasing revenue, reducing costs, or both. It shows the revenues are transformed into the net income or net profit. It is therefore a basic trading summary - how much has been spent running the company and how much has sold.

A:Cash flow statements are basically financial statements that demonstrate the amount of cash entering and leaving a company. They show how well the company generates cash to fund operating expenses and pay its debts.

A:Statutory accounts (also called annual accounts or company accounts) are the financial statements that a UK company must prepare each financial year to meet legal requirements.

Annual accounts also enable shareholders to have a clear and fair view of the company’s financial performance, helping them make informed decisions. They play an important role in the effective running and governance of your business, alongside meeting legal obligations.

Who prepares them

They can be prepared by the company’s directors or by an accountant, but the directors remain legally responsible for accuracy and timely submission.

A:Yes, UK directors must register for self-assessment and file personal tax returns. Any taxable income, for example shareholder dividends must be disclosed to HMRC. Penalties apply for late submissions and late payment.

A:Yes, of course! Even if you haven’t registered your company with us, you can still use CG Incorporation Ltd's assistance for your company’s accounts.

A:Yes you do. Even if your trading has been limited, a corporation tax return must still be filed. Why not contact us for a quote? We can get you connected to our accountant who can offer very competitive prices.

A:A confirmation statement is a general information about the company's directors, shareholders, nature of business (SIC code) and registered office address. It must be filed within 28 days of the anniversary of incorporation of the company.

All UK companies must file a confirmation statement to Companies House every 12 months. If not filed on time, Companies House will issue a penalty.

CG Incorporations Limited can help you in filing your confirmation statement.