Limited companies have to pay Corporation Tax on their income and profits. They also need to operate a PAYE (Pay As You Earn) system to collect and pay Income Tax and National Insurance contributions from their employees - including company directors.
The company itself must work out how much Corporation Tax it needs to pay, using a self assessment system. To avoid paying penalties, it's important to understand how this system works and when your company needs to make returns. Your accountant or auditor will be able to advise you.
When you register a new company, Companies House will pass on the details to HM Revenue & Customs (HMRC). Additionally, you must tell HMRC if your company is active for Corporation Tax purposes.
For more information see our guide on starting a company or organisation and Corporation Tax.
If you have any questions about tax for companies, you should contact the HMRC Employer Helpline on Tel 08457 143 143. For new businesses contact the HMRC New Employer Helpline on Tel 0845 60 70 143.
08457 143 143
0845 60 70 143