How to register for Corporation Tax with HMRC

Once your limited company is registered with Companies House, you have a legal duty to register for Corporation Tax with HM Revenue and Customs (HMRC). You must do this within three months of starting any business activity. To complete the registration, you'll need your company's 10-digit Unique Taxpayer Reference (UTR), which HMRC posts to your registered office address after incorporation.

What is Corporation Tax?

Corporation Tax is a tax paid by limited companies in the UK on their annual profits. Think of it as the company's version of Income Tax. The profit is the money your company has left over after paying all its business costs, like salaries, rent, and stock. Getting registered is the first step to ensuring you can calculate and pay the right amount.

When exactly do you need to register?

The rule is clear: you must register within three months of starting to trade. But what does 'starting to trade' actually mean? It's not just about making your first sale. HMRC considers you to be trading if your company starts any business activity, such as:

• Buying or selling goods or services
• Advertising or marketing your business
• Renting a business premises
• Employing someone
• Earning interest

It's best to register as soon as you start any of these activities to avoid any potential penalties.

Information you'll need to hand

The online registration process is much smoother if you have all the necessary information ready. Make sure you have:

• Your company's 10-digit Unique Taxpayer Reference (UTR). This is sent by post from HMRC to your company's registered office, usually within a few weeks of incorporating with Companies House.
• Your Company Registration Number (CRN) from Companies House.
• The date you started your business activities (your first day of trading).
• The date your annual accounts will be made up to (your 'accounting period end date').

How to register online

Registering is done through the HMRC website. Here’s a simple breakdown of the steps:

1. Sign in to Government Gateway: You'll need the Government Gateway user ID and password that you used when you set up your company.
2. Add a tax to your account: Once logged in, look for the option to add a tax service to your account.
3. Choose Corporation Tax: Select Corporation Tax from the list of options.
4. Enter your details: You will then be prompted to enter the information you gathered earlier, such as your UTR and business start date.
5. Submit and confirm: Review all the information for accuracy and submit your registration.

What happens after you've registered?

Once you've successfully registered, HMRC will update their records. You won't necessarily get a separate confirmation letter, but you will receive official notices from HMRC about when you need to file your first Company Tax Return (form CT600) and pay any Corporation Tax you owe. Keep an eye on your registered office address for this important correspondence.

Top Tip: Keep your company's UTR safe! You will need it for all future correspondence with HMRC regarding your company's taxes.