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.
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