Corporation Tax is a levy placed on the profits of UK-based companies and organizations, including clubs, societies, associations, and charities. Companies must pay Corporation Tax on their taxable income, which includes trading profits, investments, and capital gains. The current Corporation Tax rate is 19% on all profits. From April 2023, a new rate of 25% will apply to profits over £250,000. There will also be a small profits rate of 19% for profits up to £50,000, with marginal relief available for profits between £50,000 and £250,000.

Corporation Tax must be reported and paid annually. The deadline for filing your company tax return is 12 months after the end of your accounting period. Payment is due nine months and one day after the end of your accounting period.

Xact+ provide a corporation tax preparation and filling service, which will ensure you keep your company tax side legal and compliant.

All UK-based limited companies are required to pay Corporation Tax on their profits. This also applies to foreign companies with UK branches or offices.

• Accurate Financial Planning: Knowing your Corporation Tax obligations helps in precise financial forecasting and planning.
• Avoid Penalties: Stay compliant with HMRC to avoid hefty fines and penalties.
• Informed Decision-Making: Better tax understanding aids in making strategic business decisions.