What is Corporation Tax?
Corporation tax a tax paid by limited companies. Self employed individuals do not need to pay corporation tax.
Corporation tax is paid on paid on company profits – all income less all business expenses, before dividends drawn.
What is the Corporation Tax Rate?
The corporation tax rate for 2017 is 19%.
Corporation Tax Allowances and Reliefs
As well as deducting business expenses to reduce taxable profits, allowances & reliefs exist which can also reduce corporation tax. Examples of these allowances are:
- Capital Allowances
- Research and Development
- Trading losses
When is Corporation Tax Due?
UK businesses must submit a CT600 to HMRC annually. This form contains company income, expenses and any claims for allowances or reliefs. Corporation tax is due 9 months and 1 day after a limited company’s year end. It should be paid before this deadline to avoid a fine.
How Do You Pay Corporation Tax?
Corporation tax can be paid in all the usual ways such as:
- Bank transfer
- Credit Card
- Direct debit
HMRC lists out the exact process of how to pay corporation tax using your chosen method HERE.