Limited companies and some organisations are liable for Corporation Tax.
If your company or organisation is liable for Corporation Tax, you have to do more than just pay the correct amount of Corporation Tax each year. What you need to do depends on whether your company or organisation is 'active' (for example, carrying on business, trading, or receiving income) or 'dormant' (for example, not active, not carrying on business, or not trading).
This guide will help you decide if your company or organisation is liable for Corporation Tax and therefore subject to Corporation Tax deadlines and requirements.
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The following limited companies and unincorporated organisations are subject to Corporation Tax requirements:
The taxable profits or surpluses of these businesses and organisations are subject to Corporation Tax requirements.
A company or organisation subject to Corporation Tax requirements is known to HMRC for Corporation Tax purposes as being 'within the charge to Corporation Tax', 'chargeable to tax' or in 'the charge to tax'.
Deadlines and requirements for Corporation Tax
Businesses and organisations that are not subject to Corporation Tax requirements include:
If your business or organisation is not subject to Corporation Tax, you don't need to meet Corporation Tax deadlines and requirements.
This doesn't mean your business is exempt from all taxes as you may have to complete a Self Assessment return.
Tax returns if you're self-employed or in a partnership
HMRC uses the term 'exempt' to refer to certain activities carried out by organisations that are otherwise subject to Corporation Tax requirements.
These include:
HMRC defines charitable purposes as carrying out the primary purpose of the charity and/or directly serving the beneficiaries of the charity.
Other activities exempt from Corporation Tax include:
Unincorporated organisations and Corporation Tax
If your company or organisation is liable for Corporation Tax, it's subject to Corporation Tax deadlines and requirements. This means you have to do more than just pay the correct amount of Corporation Tax each year.
You must also tell HMRC you're liable for Corporation Tax and file a Company Tax Return on time.
There are different requirements depending on whether or not your company or organisation is active (for example, carrying on business, trading or receiving income) or dormant (for example, not active, not carrying on business or not trading).
If your company or organisation is liable for Corporation Tax, and is active (for example trading or receiving income), you must:
If your company or organisation is liable for Corporation Tax, but is dormant, or is not active you must still submit a Company Tax Return within 12 months of the end of your Corporation Tax accounting period (usually the end of your company or organisation's financial year) if HMRC sends your company or organisation a 'Notice to deliver a Company Tax Return'. You don't need to file a return if HMRC does not send you this notice.
How to tell HMRC your company or organisation is active
Trading and non-trading for Corporation Tax explained
Deadlines and requirements for Corporation Tax
Virtually all companies and organisations must submit their Company Tax Returns online. You must also pay any Corporation Tax that's due electronically.
Additionally your tax computations and, with very few exceptions, the accounts that form part of your Company Tax Return, must be submitted in Inline eXtensible Business Reporting Language (iXBRL) format.
Find more about paying your Corporation Tax electronically
See a demonstration of filing returns and managing your Corporation Tax account online
Introduction to Corporation Tax
Starting a company or organisation and Corporation Tax
Read a guide for UK limited companies on GOV.UK website
Get more information about Corporation Tax for non-UK companies
