Corporation tax is a tax on the profits of limited companies, foreign companies with a UK branch or office, and other corporate entities. The tax is calculated based on the company’s taxable profits for the year, which is typically the company’s sales minus allowable expenses and deductions. Penalties may be applied for late filing or late payment of corporation tax.
What is Corporation tax rate?
There are also different rates for companies in certain industries, such as the oil and gas industry, and small profits companies. The rates for these companies are as follows:
- Oil and gas companies: 30% for ring fence profits (profits from oil and gas extraction activities in the UK and UK continental shelf) and 19% for non-ring fence profits (other profits).
- Small profits companies: 19% for profits up to £50,000 and a marginal relief rate for profits between £50,000 and £250,000.
It is important to note that corporation tax rates are subject to change and businesses should regularly review their tax obligations and liabilities.
Here at Fair View Accounting Services we can save your corporation tax in a legal and ethical way by:
- Claiming all allowable expenses and deductions
- Maximising capital allowances
- Utilising tax reliefs such as research and development tax credits or capital gains tax reliefs
Let us handle your tax matters and call us today on 0330 1333537 or complete our online enquiry form.