Corporation tax is payable by companies on its taxable profits. Taxable profits are generally defined as trading profits (i.e. selling goods for more than they cost to produce, including services), investments made by the company and selling assets for more than they cost to buy.
The corporation tax rate for company profits since 1 April 2018 is 19%. In the years prior to 2016/17 there were reliefs for small companies and also higher levels to pay for companies making in excess of £300,000. Since 2016/17 a single flat rate has applied on all taxable profits.
Whilst this seems relatively straight-forward there are many allowances and reliefs available which make the subject of how much corporation tax you will pay often an extremely complex calculation. We can help guide you with some tax planning advice but corporation tax is where your company accountants earn their money.
If you are looking for advice on corporation tax please speak to us as we know many local accountancy firms who specialise in different sectors who will almost certainly be able to help you.
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