Understanding Corporation Tax: A Guide for UK Businesses

What Is Corporation Tax?

Corporation tax is a levy placed on the profits made by UK-based limited companies and some other organisations, including clubs and associations. Unlike income tax paid by individuals, corporation tax applies to business profits after operating expenses are deducted.

If you run a limited company registered in the UK, you are legally obligated to pay corporation tax on all taxable profits. This includes income from trading, investments, and the sale of assets. Even if your company doesn’t owe any tax, you must still file a return with HMRC.

How Is Corporation Tax Calculated?

The rate of corporation tax can change annually based on government budgets. It is usually applied as a flat rate on profits. As of the latest guidance, different rates may apply depending on a company's profit threshold. Partnering with a qualified accountant, like those at DEB Chartered Accountants, ensures accurate calculations and timely payments.

When and How to File

You must file your company’s tax return (CT600) and pay corporation tax within nine months and one day after the end of your accounting period. Filing late can lead to penalties and interest charges. DEB Accountants supports businesses with timely submissions and detailed tax planning to help avoid these risks.

Why Professional Help Matters

Corporation tax regulations can be complex and often change. A professional accountant ensures you take advantage of all eligible allowances and reliefs while maintaining full compliance. DEB Accountants offers tailored advice and services, helping businesses across the UK manage their corporation tax with confidence.

Let DEB Accountants Simplify Your Tax Process

With over 40 years of experience, DEB Accountants combines traditional expertise with digital tools to streamline your accounting. Whether you're a small start-up or a growing business, their personalised support ensures your corporation tax affairs are in expert hands.