Corporation tax
Corporation Tax is payable annually and calculated based on the profit that your company makes. Your profit is your companyās income minus its expenditure (including salaries paid to employees but excluding dividends paid).
The tax is calculated each year and is recorded on aĀ Corporation Tax returnĀ known as a CT600.
TheĀ current Corporation Tax rateĀ for small companies is 19%, and is payable on your profit each year. The Corporation Tax needs to be taken into account to determine what profits remain available to pay to the shareholders.