Corporation Tax is the tax a UK limited company pays on its annual taxable profits. The current main rate is 25% for profits above £250,000, with a small profits rate of 19% for profits up to £50,000. Companies must file a Corporation Tax return with HMRC within 12 months of the accounting period end and pay any tax owed within 9 months and 1 day. Xact+ accountants prepare and submit Corporation Tax returns on behalf of clients.