Corporation Tax for Small Companies | Paisley & Glasgow | Marsal Accountants
Corporation Tax for Small Limited Companies in Paisley, Glasgow & Central Scotland
If you run a limited company, corporation tax is one of your core compliance obligations — alongside statutory accounts, Companies House filings, and often PAYE if you employ staff or pay yourself a salary.
Marsal Accountants is based in Paisley and supports owner-managed companies across Glasgow and Central Scotland with year-end accounts, corporation tax returns, and practical tax planning.
Who must pay corporation tax?
UK-resident limited companies pay corporation tax on taxable profits — typically trading income, investment income, and chargeable gains, after allowable deductions.
Common clients we help include:
- Owner-managed consultancies and professional practices
- Construction and trade companies (sometimes alongside CIS)
- Retail, hospitality, and e-commerce businesses
- Companies with rental or investment income
If you are still a sole trader, corporation tax does not apply — but many clients incorporate once profits grow or liability protection becomes important.
Key deadlines and what HMRC expects
| Obligation | What to know |
|---|---|
| Accounting period | Usually matches your financial year; tax is calculated on profits in that period |
| Corporation tax return (CT600) | Due 12 months after the end of the accounting period |
| Tax payment | Generally due 9 months and 1 day after the period end (earlier for large companies) |
| Statutory accounts | Filed at Companies House — deadlines differ from HMRC |
Missing a payment or filing date can lead to interest and penalties. We maintain a deadline calendar for every company we act for.
Allowable expenses and common mistakes
Legitimate business costs reduce taxable profit. Typical allowable areas include:
- Staff wages, employer NIC, and pension contributions
- Rent, utilities, and insurance for business premises
- Professional fees, software, and marketing
- Mileage and travel wholly for business purposes
Frequent errors we correct during review:
- Personal spending mixed through the company bank account
- Director loans not tracked or repaid within time limits
- Dividends taken without sufficient retained profits
- Capital vs revenue items classified incorrectly
Good bookkeeping throughout the year makes the corporation tax return faster and more accurate.
Salary, dividends, and tax efficiency
Many small company directors take a combination of salary (through PAYE) and dividends. The right split depends on:
- Your other income (employment, rental, etc.)
- National Insurance thresholds
- Cash the company can legally distribute
We model options before year-end so you can make informed decisions — not last-minute guesses in March.
How Marsal Accountants can help
- Year-end accounts and corporation tax returns (CT600)
- Bookkeeping and management information during the year
- Payroll for directors and employees
- VAT registration and returns where relevant
Contact us for a free consultation, or explore our corporation tax return services.
