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> Corporation Tax - UK Guide
 Introduction
Corporation tax is, as the name would suggest, a corporate tax charged on the profits of companies. The tax rate can vary dependant upon the size of the company and the profits, and smaller companies may find that they can pay lower rates of corporate tax.
Who does this type of Tax effect?
Although corporation tax applies to companies, a company can also include members' clubs, associations, societies, trade unions, housing associations, and co-operatives. It is important to tell the Inland Revenue about your company, and your company will have to work out its own tax liability.
Overview
Corporation tax is a tax that is payable on a company's taxable profits (including associations, clubs, and unions that come under the umbrella of a company). The tax rate can vary depending on the size and profits of the company.
This tax is paid for accounting periods, which are usually twelve month periods. Returns must be made by the specified date (usually twelve months from end of accounting period) in order to avoid penalties. Larger companies may have to pay in quarterly instalments on their tax returns.
How much tax should I pay?
The tax payable can vary depending on the size of the corporation, annual profits, and circumstances. In order to avoid underpaying or overpaying corporation tax, it is important to ensure that you find out about any allowances or exemptions from the Inlands Revenue before submitting your return.
Tax Tips - Can I benefit from any type of allowances?
Corporate tax can be a complicated topic, and allowance or exemptions may vary from one corporation to another. However, you can help yourself by ensuring that you inform the Inland Revenue of any changes, and also by checking with the Inland Revenue with regards to any allowances to which your company may be entitled (such as capital allowances or group relief).
If you pay before the due date, you can ask for a repayment on your taxes. However, once the due date passes, you can only ask for repayment of any overpaid taxes. If you think you have overpaid on tax, make sure you check with the Inland Revenue, as you may be entitled to money back on your paid taxes.
Further Reading
For further information about corporate taxation, visit the Inland Revenue at: http://www.inlandrevenue.gov.uk/ctsa/what.htm
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