What is Corporation Tax?
Corporation Tax is a tax paid on profits made by limited companies.
It is paid directly to HMRC. Corporation Tax may also apply to certain clubs, associations, charities and other organisations.
On this page you will find information about:
Who needs to pay Corporation Tax?
Every company based in the UK must pay Corporation Tax on all their profits, including profits made overseas. Companies based outside the UK only pay Corporation Tax on income received in the UK.
It is the company that is legally required to pay Corporation Tax. In practice this means that the owner or director of the company must ensure that it is paid.
How much Corporation Tax do I need to pay?
The rate of Corporation Tax payable on taxable income varies according to the amount of profit a company makes.
In 2012 a company recording less than £300,000 taxable profit will be taxed at 20%, profits over £1,500,000 are taxed at 25%. There is a sliding scale for profits in between.
Companies in certain industries, such as oil extraction, may have ‘ring-fenced profits’, which are taxed at different rates.
How do I pay Corporation Tax?
If your company is liable for Corporation Tax, or you think it might be, you should inform HMRC.
They will ask you to file a company tax return, although you usually do not need to file the return until after the Corporation Tax is paid.
You can submit your company’s tax return online, and pay the tax you owe electronically.
For further Tax information, please follow the links below:
Income Tax includes:
What is income tax?
How is Income Tax calculated?
How much income tax do I need to pay?
Income Tax Allowances
Income Tax Rates and Taxable Bands
How do I pay income tax?
Tax Codes includes:
Where do I find my Tax Code?
New Tax Codes
What does my tax code mean?
Different Tax Codes
More than one job
Emergency Tax Codes
Emergency Tax Codes includes:
What is an Emergency Tax Code?
What does an emergency Tax Code look like?
Why do I have a BR/ Emergency Tax Code?
Can I get a Tax Refund if I have paid Emergency Tax?
Construction Industry Scheme includes:
CIS For Subcontractors
CIS For Contractors (Employers)
VAT (Value Added Tax) includes:
What is VAT?
When do I pay VAT?
How much VAT do I need to pay?
Do I need to register for VAT?
How do I pay VAT?
Can I claim VAT back?
Self Assessment includes:
What is Self Assessment?
Do I need to complete a Self Assessment tax return?
How do I get a Self Assessment tax return form?
How do I register for Self Assessment?
Can I register for Self Assessment on behalf of a company or trust?
What is a Unique Tax Reference number (UTR)?
How do I get a Unique Tax Reference (UTR) number?
How do I complete my Self Assessment tax return online?
Can I complete my Self Assessment tax return on paper?
Self Assessment Tax return deadlines
What if I submit my tax return late?
What if I submit my tax return incorrectly?
How is my tax calculated?
Do I need to check my tax calculation?
National Insurance includes:
What is National Insurance?
What are the different types of National Insurance?
Who pays National Insurance?
What is National Insurance used for?
Do your National Insurance payments affect your Pension and Benefits?
How much National Insurance should I pay?
Pension Tax includes:
Do I have to pay tax on my pension?
Do I have to pay tax on my state pension?
Inheritance Tax includes:
What is Inheritance Tax?
Capital Gains Tax includes:
What is Capital Gains Tax?