Who is liable for Corporation Tax

What you must do if your company or organisation is liable for Corporation Tax

If your company or organisation is liable for Corporation Tax, it is 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 HM Revenue & Customs (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 - eg carrying on business, trading or receiving income - or dormant - eg not active, not carrying on business or not trading.

What active companies or organisations must do

If your company or organisation is liable for Corporation Tax, and is active - eg trading or receiving income - you must:

  • tell HMRC that they are active
  • pay Corporation Tax on any profits that are taxable within nine months and one day of the end of your Corporation Tax accounting period - usually the end of your financial year
  • file a Company Tax Return within 12 months of the end of your company or organisation's Corporation Tax 'accounting period' - usually the end of your financial year

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.

Find out how to tell HMRC your company or organisation is active in our guide on starting a company or organisation and Corporation Tax.

Trading and non-trading for Corporation Tax explained

Deadlines and requirements for Corporation Tax

Submitting your Company Tax Return and how to pay

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.

Switching from paper to online Company Tax Returns and electronic payment

Corporation Tax Online: setting up and managing your online account

How to pay Corporation Tax

See a demonstration of filing returns and managing your Corporation Tax account online on the HMRC website
File your accounts and Company Tax Return

Subjects covered in this guide


Developed with:
HM Revenue & Customs

Also on this site