What is Corporation Tax?

Directors of Limited Companies are subject to PAYE, Self-Assessment Tax and National Insurance contributions.

Businesses are taxed separately for Corporation Tax on the businesses trading profits, investment income and Capital Gains.

The following HMRC video explains this in further detail:

HMRC video explaining what is Corporation Tax

Who pays Corporation Tax?

It is not only owners of Limited Companies that pay Corporation Tax.  Other types of businesses which are liable for Corporation Tax include:

  • PLCs
  • Unincorporated Associations,and;
  • Other associations including clubs, societies and other membership organisations.

Rates for Corporation Tax

The current rate for Corporation Tax in the UK is 19%.

There are different Corporation Tax rates for companies that make profits from oil extraction or oil rights in the UK or UK continental shelf. These are known as ‘ring fence’ companies.

Ring fence companies can claim Marginal Relief on profits between £300,000 and £1.5 million.

You can view previous Corporation Tax rates here.

HMRC’s tougher stance

Corporation Tax can be challenging for the tax novice. HMRC continues to introduce harsher penalties for non-compliance whilst stepping up their number of detailed tax investigations. You may well find that dealing with HMRC eats up more of your precious time.

We can help

At McCabe Ford Williams Chartered Accountants, we have the knowledge and experience to help your organisation deal with the increasingly complex Corporation Tax system.

Our Corporation Tax services

We offer a comprehensive Corporation Tax compliance service to relieve you of this administrative burden, including:

  • Preparing and submitting the corporate tax return;
  • Calculating the tax provision for your accounts;
  • Ensuring compliance with corporation tax self assessment;
  • Dealing with HMRC on your behalf;
  • Advising how much tax to pay and when to make a payment.

If you need more help

We also offer a full corporate tax planning service.  So, if you are struggling to get to grips with Corporation Tax or any other tax or accounting matters simply call or complete our contact form and book a free consultation.

Book a free initial consultation
to see how we can help your business.

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