Corporation Tax for companies.

What is Corporation Tax?

Companies may pay Corporation Tax on taxable profits. The calculation starts with accounting results and applies tax adjustments, reliefs and rules for the relevant accounting period.

How do you register?

A company must tell HMRC that it is within Corporation Tax and provide the information required for its accounting period. The registration process is separate from filing the company’s accounts at Companies House.

How is Corporation Tax calculated?

The small profits rate is 19% where taxable profits are £50,000 or less. The main rate is 25% where taxable profits exceed £250,000. Marginal relief may apply between those limits. Associated companies and short accounting periods can affect the limits.

What must a company file?

A company normally submits a Company Tax Return with supporting computations within 12 months of the end of its accounting period. Annual accounts are normally filed with Companies House within 9 months of the company’s financial year end. Corporation Tax is normally paid 9 months and 1 day after the end of the accounting period.

Company responsibilities

• Keep accurate accounting and tax records.
• Track the accounting period and filing deadlines.
• Register with HMRC when required.
• Submit the Company Tax Return on time.
• Pay Corporation Tax by the applicable deadline.

Related guides.

Check rates, thresholds and deadlines for the correct tax year before you rely on them.