How do I register for Corporation Tax?

When do I need to register for Corporation Tax?

After your company has been incorporated with Companies House, you’ll usually need to register it for Corporation Tax with HMRC.

You should register within three months of your company starting business activities. Examples of business activities include:

• buying or selling goods or services;
• advertising or marketing the business;
• employing staff;
• entering into business contracts; or
• earning income.

If you don’t register on time, HMRC may charge penalties.

How can I register for Corporation Tax?

Before you can register for Corporation Tax, your company must first be incorporated with Companies House.

Once your company has been incorporated:

1. Companies House will notify HMRC that your company has been formed.
2. HMRC will issue your company with a 10-digit Unique Taxpayer Reference (UTR). This is usually sent to your company’s registered office.
3. If your company starts carrying on business, you must register for Corporation Tax with HMRC within three months of starting business activities.

You’ll use your company’s UTR to complete the online registration process.

What records do I need to keep?

Limited companies must keep accurate business and accounting records to prepare their accounts and Company Tax Return, and to meet their legal obligations.

The records you should keep include:

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1.  Sales invoices and purchase invoices
2. Bank statements and details of electronic payments and receipts
3. Accounting records, including cash books and other financial records
4. Credit notes and debit notes issued or received
5. Purchase orders, delivery notes and other supporting documents
6. Records of cash sales or daily takings (where applicable)
7. Payroll records (if you employ staff)
8. VAT records (if your company is VAT registered)
9. Details of business assets and capital expenditure
10. Copies of Company Tax Returns and supporting calculations
11. Copies of annual accounts
12. Relevant business correspondence and contracts

Companies can keep these records electronically, provided they are complete, accurate and can be produced if HMRC asks to see them.

What happens after I register for Corporation Tax?

Once your company is registered for Corporation Tax, you’ll need to:

• keep accurate accounting records throughout the accounting period;
• prepare annual accounts;
• submit a Company Tax Return to HMRC; and
• pay any Corporation Tax due by the relevant deadline.

Corporation Tax is normally payable nine months and one day after the end of the company’s accounting period. The Company Tax Return has a separate filing deadline, so it’s important to plan ahead and ensure both obligations are met.

For the latest filing and payment deadlines, see HMRC’s guidance on Company Tax Returns.