What is corporation tax? A corporation tax is an indirect and personal tax levied on the profits earned by businesses and other legal entities. The tax bases and the exact amount to be paid vary according to the gross national income and also the liability of the business for corporate taxes. Business owners may claim tax relief in certain instances, as per different nation’s laws and the details and procedures may differ from one country to another.

How is the corporation tax rate calculated? The percentage rate is derived by dividing the total taxable profit by the total number of shares outstanding at that particular time. This percentage is referred to as the taxable profit percentage and is used to calculate the corporation tax rate. If you need help and advice from a firm of Accountants Chippenham, visit a site such as Chippendale and Clark

Business owners are required by law to make yearly returns to the Companies House. These accounts show the income made from various sources and include information such as the gross sales, number of days’ work and income generated from various activities, such as trading, interests and dividends etc. Most UK company tax companies pay dividends to shareholders and also receive payments from the shareholders. These payments are termed as payment of dividends.