UK corporation tax

What is the corporation tax rate?

Corporation tax is regulated by the Corporation Tax Act 2010 and other acts. Since 1st April 2015 the Corporation Tax is 20%.

What types of profits are taxed?

Limited companies and foreign companies with a UK branch or office must pay corporation tax on taxable profits. Taxable profits include trading profits, investments and chargeable gains from selling assets. A UK limited company pays Corporation Tax on all its profits from the UK and abroad. A foreign company with an office or branch in the UK pays Corporation Tax on profits from its UK activities

How to register for corporation tax?

HMRC usually sends the company’s Unique Taxpayer Reference 10 digits (UTR) to their registered office address, normally within a few days of the company being registered in Companies House. The company needs to set up an HMRC online account for Company Tax Returns and Corporation Tax using the information sent to it

What are deadlines for corporation tax payments and returns?

A limited company must file annual accounts with Companies House 9 months after the company’s financial year ends at the latest. A limited company with profits up to £1.5 million normally must pay Corporation Tax 9 months and 1 day after the company’s accounting period ends and file a Company Tax Return 12 months after the company’s financial year ends. For profits exceeding £1.5 million 4 equal instalments are normally required.

What are deadlines for corporation tax payments and returns?

To pay your corporation tax you’ll need your 17-digit Corporation Tax payslip reference for the accounting period you’re paying. The reference number can be found on your payslip. The payslip is sent to the companies registered address by HMRC. If you have access to the company’s HMRC online account you can through your company’s 17-digit Corporation Tax there ‘View account’ then ‘Accounting period’.

How to pay your corporation tax

Make sure you pay HM Revenue and Customs (HMRC) by the deadline. They may charge you interest if you don’t pay on time. They’ll pay you interest if you pay your tax early.

The time you need to allow depends on how you pay.

Same day or next day

3 working days

5 working days