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HMRC incentivises early payment by paying companies a 0.5 per cent interest rate on their total company tax bill. To take advantage of this incentive and avoid any late filing or payment penalty, calculate corporation tax earlier. Use our corporation tax calculator UK below.
A Brief Guide to Corporation Tax
All limited companies pay corporation tax in the UK on their trading profits, investments, and taxable gains, no matter their size. Foreign companies with a UK branch or office only pay company tax on their UK trading incomes. For the current tax year, corporations tax rates are as follows:
| TAXABLE INCOME | TAX RATES |
|---|---|
|
Less than £50,000 |
19% |
|
Between £50,000 and £250,000 |
26.5%* |
|
More than £250,000 |
25% |
This marginal relief applies to adjusted augmented profits between the lower limit (£50,000) and the upper limit (£250,000), from 1 April 2023 onward.
The taxable income is calculated by subtracting all tax-deductible factors (e.g., capital allowances, depreciation, etc.) from the adjusted gross income (e.g., overheads, business expenses, etc.). The corporation tax bill estimate is arrived at by multiplying the taxable income with the right corporate tax rate.
Companies must pay corporation tax every year, which is nine months and one day after their financial year. Filing tax returns follows, which should be twelve months within the company’s accounting period.
To determine the most accurate bill, use our corporate tax calculator below.
Cumbernauld
Shipley
Disclaimer: Our corporate tax rate calculator may not include other tax deduction elements, but our tax accountants will provide more hands-on assistance to determine the most accurate charge.
Frequently Asked Questions
Any UK-based company must pay corporation tax on all profits in the UK and abroad.
There are many ways to mitigate corporation tax bill, such as claiming R&D tax relief, using capital gains tax reliefs, not missing tax deadlines, and more. Legend Financial is here to guide companies through the best options.
All limited companies pay corporation tax as there is no tax-free threshold.
Those who do not pay their corporation tax dues will receive a warning letter from HMRC. No response will get them flanked up by HMRC, with several complications.
Why Legend Financial for Your Tax Return
To arrive at the most accurate calculation, using our corporation tax calculator UK will be of great help. Our tax experts at Legend Financial will also provide the most comprehensive assistance, from preparing your profit and loss statements to filing tax returns. We have served a lot of companies from all kinds of niches for more than ten years, so you can trust us to handle your business tax affairs promptly and efficiently!
