Corp Tax

[MrRobin]

No worries. It's designed to be confusing so the government can justify increased budgets for tax investigators.

[IR35 Avoider]

Am I right in thinking that the amount I'll need to pay corp tax on will be based on the value in my annual accounts ?

Profit for Corporation tax purposes is not necessarily the same as profit computed under accounting standards. So you can't just take "profit" from your accounts and multiply by the Corporation Tax rate to get the exact amount payable. In my case, the differences between the two profit calculations have been so slight that for the first 15 years of contracting I didn't realise there was a distinction, despite having closely monitored what my accountant was doing.

[Sockpuppet]

You need to fill out a CT600 which will tell you the tax that you need to pay.

It really is a) an accountants job or b) a get an accountant to do it one year and copy and paste correct figures next year and pray to god nothing major changes.

[Ardesco]

Profit for Corporation tax purposes is not necessarily the same as profit computed under accounting standards. So you can't just take "profit" from your accounts and multiply by the Corporation Tax rate to get the exact amount payable. In my case, the differences between the two profit calculations have been so slight that for the first 15 years of contracting I didn't realise there was a distinction, despite having closely monitored what my accountant was doing.

As I said before it was a rough estimation that I gave. To get it done properly get an accountant.