If you’ve recently set up a limited company in the UK, one of your key responsibilities is registering for Corporation Tax with HMRC. Failure to do so on time can result in fines, so it’s essential to understand the process and deadlines.
In this guide, we’ll cover:
- What Corporation Tax is and who needs to register
- The steps to register your business for Corporation Tax
- Important deadlines and penalties to avoid
- How to file your Corporation Tax return
What is Corporation Tax and Who Needs to Register?
Corporation Tax is a tax on the profits of limited companies and certain organisations in the UK. Unlike income tax, which individuals pay, businesses must calculate and pay Corporation Tax on their own.
You must register for Corporation Tax if:
- You’ve formed a limited company (whether trading or not)
- Your company is making a profit (or expects to)
- Your company is based in the UK or operates in the UK
Key Fact: Unlike VAT, there is no minimum profit threshold for Corporation Tax. If your company makes a profit, it must pay Corporation Tax.
More info: HMRC: Corporation Tax Overview
When Do You Need to Register for Corporation Tax?
You must register for Corporation Tax within three months of starting trading. “Trading” can include:
- Selling goods or services
- Renting out property
- Advertising or taking on business contracts
If you miss the deadline: HMRC may issue a fine, even if your company hasn’t made a profit yet.
How to Register for Corporation Tax: Step-by-Step
Step 1: Get Your Company’s UTR (Unique Taxpayer Reference)
After forming your company with Companies House, HMRC will send a Unique Taxpayer Reference (UTR) to your registered office address.
- This 10-digit UTR number is essential for tax registration and filings.
- If you haven’t received it within a few weeks, contact HMRC.
Find your UTR: Request Your Corporation Tax UTR
