March 2, 2024

When is corporate tax due? A guide to UK corporation tax

What are the corporate tax rates?

The corporate tax rate on a company's profits is Between 19% and 25%depending on how much profit the company makes.

How much is corporate tax for a limited company?

year

Earnings rate less than £300,000

The main rate on profits over £300,000

2023-2024

19% (on profits of £50.00 or less)

25% (on profits over £250,000)

2022-2023

19%

19%

2021-2022

19%

19%

2020-2021

19%

19%

2019-2020

19%

19%

2018-2019

19%

19%

2017-2018

19%

19%

2016-2017

20%

20%

2015-2016

20%

20%

2014-2015

20%

21%

You must pay the rate applicable in your company's accounting period for corporation tax (the time covered by your company's tax return).

You can check the accounting period of your company through Log in to the HMRC online service. This is usually consistent with your company's financial statements and annual accounts. Most companies have an accounting period of 12 months – and your accounting period cannot be longer than 12 months.

Corporate tax rates 2023-24

The way companies pay corporation tax changed on 1 April 2023.

  • companies with Profits of £50,000 or less Pay corporate tax in 19 percent

  • companies with Profits in excess of £250,000 Pay corporate tax in 25 percent

  • work with Profits ranging from £50,000 to £250,000 Pay corporate tax in Between 19% and 25%

It is important to note that companies with profits between £50,000 and £250,000 have to pay more than before. This is because companies are charged an effective tax rate (ranging between 19 per cent and 25 per cent) based on the amount of marginal relief they can claim.

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the government Marginal relief calculator It can help you determine how much marginal relief you can claim and what your effective company tax rate is if your profits fall into this category.

When do you pay corporate tax?

This is where things get complicated, because the deadline for paying corporation tax is different from other taxes, and depends on your accounting period:

  • You need to pay corporate tax Before filing your company tax return

  • The deadline for payment is Nine months and one day after the end of the accounting period for the previous fiscal year -So if your accounting period ends on March 31, your company tax deadline is January 1

  • But you have to Prepare your company tax return to determine how much corporate tax you must pay – Even though the deadline for filing your company tax return is late (12 months after the end of the accounting period it covers)

If you're just starting your small business, you may have two accounting periods for corporation tax, as the accounting period cannot be longer than 12 months.

For example, if you start your business in January, your first accounting period could be March 31, when a full 12-month accounting period begins.

Businesses with profits of more than £1.5m will need to pay their corporation tax on the premises, so the process is different. Even if your company is making losses and you have no corporation tax due, you still need to declare this to HMRC.

Read more about how to file a corporate tax return.

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