Corporation Tax (HMRC)

A limited company pays Corporation Tax on its taxable profit.

• Rates: 19% on profits up to £50,000; 25% on profits over £250,000; in between you pay 25% minus marginal relief. The limits are reduced for short periods and for associated companies.
• Pay within 9 months and 1 day after the accounting period ends – this is before the return is due.
• File the Company Tax Return (CT600) within 12 months after the period ends – even with a loss or nothing to pay.
• Late return: £100 immediately, with further penalties if it stays late.

The Corporation tax report in Books gives an estimate from your bookkeeping profit. Your accountant adjusts it for items such as capital allowances or costs HMRC does not allow. Put money aside regularly.

Official sources

• Corporation Tax rates – GOV.UK ↗
• Company Tax Returns – GOV.UK ↗
• Pay Corporation Tax – GOV.UK ↗

General information, not tax or legal advice. Rates and dates change – always check GOV.UK.