Corporation Tax is a tax on the profits of limited companies and some organisations. Below are the current rates, thresholds, and key information you need to know as a UK business owner.
Corporation Tax Rates for Financial Year 2024–25
| Profit Range | Corporation Tax Rate | Details |
|---|---|---|
| Up to £50,000 | 19% | Known as the Small Profits Rate |
| £50,001 to £250,000 | Tapered | Gradually increases from 19% to 25%, depending on the amount of profit |
| Over £250,000 | 25% | Main rate of Corporation Tax |
Associated Companies Rule (Important Update)
If your company has associated companies, the thresholds (£50,000 and £250,000) are divided by the number of associated companies.
For example, if you have 2 associated companies, your thresholds become:
- £25,000 (small profits rate)
- £125,000 (main rate kicks in)
Filing & Payment Deadlines
| Company Type | Filing Deadline | Payment Deadline |
|---|---|---|
| Most small/medium companies | 12 months after year end | 9 months and 1 day after the end of the period |
| Large companies (profits > £1.5m) | Quarterly instalments | Depending on size — earlier payments may apply |
Other Notes
- Corporation Tax is not automatically deducted — you must calculate and pay it yourself via your Company Tax Return (CT600).
- You must register for Corporation Tax within 3 months of starting to trade.
- Use HMRC’s online service to file your return and make payments.
Need Help?
If you’re unsure how to calculate your Corporation Tax or have complex arrangements (e.g., associated companies, investment income), please contact us for a consultation.
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