Corporation Tax

Corporation tax is paid by limited companies on their profits.

What is Corporation Tax?

Corporation tax is paid by limited companies on their profits.

Your company’s profit is the total income for the year, minus all outgoings – including expenses. You must then pay corporation tax on the remaining profit. Corporation tax is currently 19% at the small profits rate. The profit available after paying corporation tax is available to be paid as dividends.

Corporation tax is entered on a Corporation Tax Return (CT600), which is due 9 months after the end of the company accounting year.

When do I pay Corporation Tax?

You must pay your Corporation Tax by 9 months and 1 day after the end of your accounting period. Your accounting period is usually your financial year end but you may have two accounting periods if it is your company's first year. If it isn’t paid in time, interest is charged by HMRC.

You can pay your Corporation Tax here.

What is a Company Tax Return (CT600)?

A CT600 is a company tax return which is submitted to HMRC and outlines the amount of Corporation Tax your company is required to pay along with calculations of how this figure was calculated.

This is normally filed at the same time as your year end accounts are filed at Companies House.

When is my Company Tax Return due?

The Corporation Tax return must be sent with the annual accounts and tax computations to the HMRC within nine months of the company’s year end. An automatic penalty will be charged if they are not filed in time.

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