Operating a UK company brings significant trading benefits, but also statutory tax duties. Chief among these is Corporation Tax, which must be declared and paid on all business profits.
Current Tax Rates
The UK uses a tiered tax scheme:
- Small Profits Rate (19%): Applies to companies with profits below £50,000.
- Main Rate (25%): Applies to companies with profits exceeding £250,000.
- Marginal Relief: Provides a sliding scale calculation for profits between £50,000 and £250,000.
Filing Deadlines
Unlike personal income tax, Corporation Tax has strict payment deadlines that precede the filing of your tax return:
- Payment Deadline: 9 months and 1 day after the end of your accounting period.
- Filing Deadline: 12 months after the end of your accounting period (Form CT600).
Failing to submit your accounts or pay taxes on time leads to automated penalties starting at £100. Engaging a professional accountant early keeps your registration compliant and avoids costly mistakes.
Thomas Davies
2 days agoThis guide cleared up my questions regarding address privacy. I was about to use my personal residential flat, but using a virtual London office is a far better choice.
Amara Kalu
1 week agoDoes Companies House require physical lease logs if we use a virtual address? Or is the registration certificate sufficient proof for banking opening?