When to register for Corporation Tax

Companies and other organisations that are liable for Corporation Tax must ensure they register with HMRC at the correct time. Failing to register when required could result in missed filing obligations and potential penalties.

Most limited companies can register for Corporation Tax when they are first incorporated at Companies House. If Corporation Tax was not set up during incorporation, the company will need to add Corporation Tax services in its business tax account.

A company usually needs to register for Corporation Tax when it becomes active for Corporation Tax purposes. This can include starting a trade or professional activity, providing services, buying and selling goods for profit, earning interest, managing investments or receiving any other income.

Companies that are within the charge to Corporation Tax must tell HMRC within three months of the start of their Corporation Tax accounting period that they are active.

It is important to remember that a newly incorporated company may not immediately have Corporation Tax obligations if it is dormant. A dormant company does not generally pay Corporation Tax, although it must still meet any Companies House filing requirements.