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Q: I am a company based in Northern Ireland, can you tell me what I need to do to be compliant for Corporation Tax?
A: A UK company is required to file a corporation tax return (Form CT600) within 12 months of the accounting period end. Corporation tax in the UK is payable 9 months and 1 day from the end of the 12 month accounting period.
For a large company, i.e. a company who pays tax at 30%, corporation tax is payable in quarterly installments. Each installment payment equals one quarter of the estimated corporation tax liability. These are payable as follows:
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1st installment payment – 6 months and 14 days after the start of the accounting period.
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2nd installment payment – 9 months and 14 days after the start of the accounting period.
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3rd installment payment – 14 days after the end of the accounting period.
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4th installment payment – 3 months and 14 days after the end of the accounting period.
| From 1st January | Trading Profits |
Non-Trading Income (Note 1) |
| 2007 to date |
12.5% |
25 |
Note 1:
Higher corporation tax rates apply to non trading income such as rental income/bank interest etc.
Note 2:
A company may be liable to an additional surcharge in respect of undistributed professional service income or undistributed rental and investment income.
Comparison of UK Tax Rates with Tax Rates in Ireland
| UK Corporation Tax Rates | ROI Corporation Tax Rates | ||||
| Financial Year | SCR Rate | STD Rate | Marginal Rate | Trading Profits | Non-Trading Profits |
| 2010 | 21% | 28% | 29.75% | 12.5% | 25% |
| 2011 | 20% | 26% | 27.5% | 12.5% | 25% |
More on Corporation Tax next week........
InterTradeIreland are confident that the information and opinions contained in this Q&A section have been compiled or arrived at by the authors from sources believed to be reliable and in good faith, but no representation or warranty, express or implied, is made to their accuracy completeness or correctness. All opinions and estimates contained in this Q&A section constitute the authors judgment as of the date (31st December 2010) that the Q&A’s were compiled and are subject to change without notice. This section is intended to provide general information to its readers. It is not intended to provide a comprehensive statement of the subject matter and does not necessarily reflect the views of InterTradeIreland. While care has been taken in the production of the Q&A’s, no responsibility is accepted by InterTradeIreland for any errors or omissions herein.”