Sources checked
When must a new UK company register for Corporation Tax?
HMRC states a company must tell it within 3 months of starting its tax accounting period if the company is active for Corporation Tax purposes. HMRC treats a company as active when it is, for example, carrying on a business or professional activity, buying and selling goods to make a profit, providing services, earning interest, managing investments, or receiving any other income.
What to check
- The deadline. Tell HMRC within 3 months of starting your tax accounting period, if the company is active for Corporation Tax purposes.
- What HMRC treats as active. Carrying on a business or professional activity, buying and selling goods to make a profit, providing services, earning interest, or managing investments.
- Other income counts too. HMRC's list ends with receiving any other income, so the test is broader than trading alone.
Sources
Related questions
- Does writing a business plan start the clock?
- No. HMRC states preliminary activities such as writing a business plan or negotiating contracts, and pre-trading expenditure, do not count as being active or trading for Corporation Tax purposes.
- What does HMRC treat as being active?
- HMRC gives examples including carrying on a business or professional activity, buying and selling goods with a view to profit, providing services, earning interest, managing investments, and receiving any other income.
What this answer does not cover
- This page covers when to tell HMRC the company is active. What a dormant company must do instead is a separate question, not covered here.
- HMRC updates its guidance from time to time, so confirm the deadline against the source before relying on it.