[ˌkɔːpəˈreɪʃᵊn tæks]
Corporation Tax is the tax on business profits in the UK. It is 25% for larger companies and 19% for smaller ones for the 2023/24 tax year.
Corporation Tax is a tax on profits made by Limited Companies and other corporate entities. For the 2023/24 Tax Year, smaller entities (companies who make less than £50,000 a year profit) pay a rate of 19% while larger companies (companies who make more than £50,000 a year profit) pay a 25% rate.
Corporation Tax generates a large amount of revenue for the government and the money is used to fund public services.
Companies need to register to pay with HMRC in order to pay Corporation Tax. It is important that tax returns and payments are submitted accurately and on time as HMRC have strong powers to collect any money owed and fine you more.
There are loads of different tax laws in the United Kingdom. IR35 is very important to freelancers and contractors but can be a little confusing. Here, we explain simply what IR35 is and who it can affect.
Read more
Self-employed individuals can use two different methods to expense business vehicle costs. Here, we investigate the positive and negatives for both methods and which one might be right for you.
Read more
