Ensuring Compliance with Corporate Tax Requirements in the UK

If you’re a company or a private entity conducting business operations in the UK, one of the basic requirements to be able to operate smoothly is to make sure that you are compliant with all your tax obligations. 

 
Depending on your business classification, UK tax regulations have specific clauses for you to comply with. For most companies and businesses, compliance with the UK Company Tax rates, allowances and other guidelines is needed. 

Read: UK Taxation 101: How to Avoid Tax Fraud  

As a corporate taxpayer, you are required to retain and manage business and accounting records for you to file an accurate Company Tax Return. The records are also important for accountants to ensure that your business’s Corporation Tax rate calculations are accurate. 

Policies on corporate taxes in the UK are not as complicated as they seem. To assist you in the whole process of tax planning, here are a few things to keep note for a company that is just starting: 

What accurate and up to date record keeping can do for you: 

• Make it easier for you to pay the right amount of tax at the right time 

• Avoid wasting time and funds on extra tax or penalties 

• Keep track of your expenses and debts 

• Receive the amount of benefits and credits your business really deserves 

Why record keeping is a must: 

• Avoid paying record keeping penalties resulting from failure to keep records for the required period 

• Avoid paying inaccurate return penalties resulting from failure to present complete, readable and accurate records 

• Defend your business in any mishap with the government by providing full and accurate financial records 

There are various records that you need to keep depending on the size and complexity of your company and your company’s operations. At the same time, the tax rates that you are to pay, collect or charge also differ depending on the same qualifications. 

Alongside proper compliance, it is important that you keep your records updated. From the start, make sure you can note and record all your financial transactions to have accurate financial records at all times. 
 
Having accurate financial records is vital for proper tax compliance as it makes it easier for you or your accountant to work out correctly the amount you owe to or can reclaim from HMRC which is the HM Revenue and Customs branch of the UK Government.  

It is also important to note that your books and records should be easily accessible to the HMRC should they see it fit to study them. 

Record keeping enables your accountant to work out your business’s taxable profits, calculate your corporation tax rates and file them easily – making tax compliance a relatively easy task for your company and paving the way for smooth operations and company success.  

Read: Knowing the Requirements for The UK's Making Tax Digital  

Need Help in Manage your Company’s Finances?  

D&V Philippines offers a wide array of services to help you manage your company finances and make sure you are compliant with all of your legal requirements. Contact us today! Our accountants are well-versed in using various accounting software.  

Our goal is to provide you with the tools and resources needed to run your operations smoothly and efficiently. This includes helping you maximize your finances through proper management and optimization. 

You can also download our whitepaper Outsourcing: How to Make it Work to find out more ways to succeed in outsourcing. 

Originally posted on 2015 April 13 and updated by Aly Tagamolila 2024 August 1