The Group of Seven (G7) is a group consisting of the United Kingdom, United States, Canada, Germany, France, Italy and Japan. These countries have the seven largest advanced economies in the world, representing more than 62% of the global net worth.
What Is Corporation Tax?
When you set up a limited company, your annual profits are subject to Corporation Tax.
Corporate tax is one of the main tasks that accountants have to tackle, however it’s up to the directors of the company to ensure all tax affairs are in order.
As a director of a limited company in the UK, it’s up to you to make sure your company’s corporation tax liability is accurate, your tax form (form CT600) is filled in and with HMRC on time, and that you pay corporation tax to HMRC when it’s due.
Who Pays Corporation Tax?
All UK limited companies are subject to Corporation Tax and are charged as a percentage of the annual profits made by the company.
Sole traders or partnerships do not pay Corporation Tax and instead are classed as self-employed, paying tax on their business profits through an annual self-assessment.
Most businesses have a 12-month accounting period, although it is possible to set a shorter period. It’s also possible for your accountant to apply to change your year-end date so that it ties in with other statutory deadlines.
G7 Corporation Taxes Rates
The UK’s current Corporation Tax rate is 19% (2018/19), which is 1% lower than the Corporation Tax rate for the 2015/16 tax year, which was at 20%. It’s been stated by Government that it intends to cut Corporation Tax to 17% by 2020/.
How does this compare to the other countries in the G7?
|Country||Tax Rate (2018/2019)|
|United States of America||27%|
If you would like to get the right advice around corporation tax both within the UK and G7, contact our experienced team at One Click Group