Corporation Tax

The tax paid by limited companies on their taxable profits. In the UK, the current main rate is 25% for profits above £250,000.

Understanding Corporation Tax is essential when setting up a limited company. It affects how much profit you can take out of the business and when.

Your limited company makes £60,000 profit in a financial year. At the 19% small profits rate, you owe £11,400 in Corporation Tax, payable 9 months after your accounting year ends.