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If you are a limited company contractor, your company will be liable to pay corporation tax on any profits.
If you have hired a contractor accountant, they will most likely deal with all affairs related to HMRC and your corporation tax requirements.
How to register to pay corporation tax
Once you have formed a limited company, Companies House will inform HMRC of the company's existence.
Within a few weeks, HMRC will send you an introductory pack, including information on how corporation tax works and how it applies to your new company.
You should complete form CT41G (which contains details on your new company), and return this to HMRC. If you have not yet started trading, just complete the dormant company insert in the same form.
Most contractors will use an accountant to take care of their limited company tax affairs. Your 'agent' will act on your behalf and file your annual corporation tax return.
These days, more and more tax information is submitted online (PAYE and VAT as well as Corporation Tax), so you can either authorise your agency online, or download Form 64-8 from the HMRC site.
More information
- More about authorising your accountant to act on your company's behalf on the HMRC site here.
- HMRC's main corporation tax section here.
- Our guide to corporation tax, and the latest corporation tax rates.
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