Corporation tax is one of the largest predictable costs for any limited company, yet it is often treated as an afterthought until the payment deadline looms.
What we cover
We prepare corporation tax computations from your year-end accounts, reconcile taxable profits to accounting profits, and apply capital allowances, super-deductions where relevant, and other statutory reliefs.
- Planning work includes timing of expenditure, pension contributions, director remuneration versus dividends, and understanding the impact of associated companies on marginal rates. Where group structures exist, we coordinate with group reporting requirements.
How we work
Corporate tax is integrated with your year-end accounts process. Once accounts are approved, we finalise the tax computation, discuss any planning points before submission, and agree payment dates.
- We maintain a clear paper trail linking entries in Xero to tax treatments, which makes reviews faster and enquiries easier to defend. Where estimates are needed for provisions or uncertain treatments, we document the reasoning.
Corporation tax and cash flow
Corporation tax payments can strain cash if they are not forecast. We build payment schedules alongside your accounts so you set aside funds monthly rather than facing a single large outflow.
- Where profits fluctuate, we explain marginal rates and how associated company rules may apply if you control more than one limited company. Small changes in timing of expenditure or dividends can shift liability materially; we model scenarios before you commit.
Records HMRC expects
HMRC expects underlying records to support every adjustment in the tax computation. We maintain clear working papers linking Xero entries to tax treatments, which speeds filing and reduces stress if HMRC asks questions later.
- For companies with employees, R&D activity or property income, schedules are prepared methodically so nothing is missed. Directors receive a summary that translates the computation into plain English.