Re: Paying corporation tax in two countries
If you are running a limited company then you may need to pay Corporation Tax (CT). Corporation Tax is a tax on your company’s overall taxable profit's.
The word ‘company’ is also used to include:
● members’ clubs, societies and associations
● trade associations
● housing associations
● groups of individuals carrying on a business but not as a partnership, (for example, co-operatives).
HMRC will send an introductory package to new companies. This helps to make it easier for companies registered under the Companies Act to give HMRC the information needed to set up their tax records from the right facts.
As a director of a limited company, you are also an employee of the business and need to pay tax on your salary (including Benefit's in Kind, dividend income and other income derived from the company) and operate PAYE and NICs for yourself and all employees.
Corporation Tax is due for ‘Accounting Periods’ which are normally 12 months long.
To work out how much is owed, you will need to know how much taxable profit you made in each accounting period. For more information on accounting periods, visit www.businesslink.gov.uk.