Corporation Tax Services Peterborough

Who makes sure you are fulfilling your corporation tax requirements and what are the obligations?

To ensure that companies are fulfilling their corporation tax obligations, HMRC may carry out audits and investigations to verify that the tax paid by the company is accurate – the current % of businesses that are audited varies between 5-10% per year. Companies that fail to comply with their corporation tax responsibilities may face penalties and fines, and in severe cases, legal action.

In addition to paying corporation tax, companies in the UK also have a responsibility to ensure that they are not engaging in any illegal tax evasion practices. This includes making sure that all tax returns are filed correctly and that any tax planning undertaken is in compliance with UK tax laws.

One important area of corporation tax responsibility for companies is transfer pricing. This refers to the practice of setting prices for goods and services sold between different parts of a multinational company. The UK government has strict rules governing transfer pricing, and companies are required to ensure that their transfer pricing policies comply with these rules. Failure to do so can result in penalties and legal action.

Another area of responsibility for companies is ensuring that they are taking advantage of all available tax reliefs and allowances. For example, companies may be eligible for tax relief on research and development spending, or may be able to claim capital allowances on certain types of capital expenditure. It is the responsibility of the company to ensure that they are claiming all relevant tax reliefs and allowances.

Finally, companies also have a responsibility to ensure that they are complying with all relevant anti-money laundering and anti-bribery regulations. This includes carrying out due diligence checks on customers and suppliers, and implementing effective systems and controls to prevent money laundering and bribery.