Corporation Tax Calculator

Jordan Macey

July 2, 2021

iPhone about to calculate corporation tax

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Corporation tax basics: What you need to know

Corporation Tax refers to tax you pay on money your company or association makes from trading profits, investments and chargeable gains.

It is calculated and paid on an annual basis, based on your ‘accounting period’ for corporation tax. This is typically the same as your company’s financial year. Limited companies, foreign companies with a UK branch or office, clubs, co-operatives and unincorporated associations are required to pay corporation tax on profits.

When is corporation tax due?

Keep in mind that unlike most taxes, the deadline for paying your corporation tax bill is earlier than the deadline for your tax return.

Your corporation tax bill is nine months and one day following the end of your accounting period. If the end of your accounting period falls on 31 March 2019, you’ll need to make your payment by 1 January 2020. The payment is made once a year if your profits fall below £1.5 million. Payment is made in instalments for businesses with profits exceeding £1.5 million.

What is the current corporation tax rate?

The current rate is 19% for the 2019/20 tax year. For the tax year starting 1 April 2020, the rate will be reduced to 18%.

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Corporation Tax Calculator

Corporation tax basics: What you need to know

Corporation Tax refers to tax you pay on money your company or association makes from trading profits, investments and chargeable gains.

It is calculated and paid on an annual basis, based on your ‘accounting period' for corporation tax. This is typically the same as your company's financial year. Limited companies, foreign companies with a UK branch or office, clubs, co-operatives and unincorporated associations are required to pay corporation tax on profits.

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When is corporation tax due?

Keep in mind that unlike most taxes, the deadline for paying your corporation tax bill is earlier than the deadline for your tax return.

Your corporation tax bill is nine months and one day following the end of your accounting period. If the end of your accounting period falls on 31 March 2019, you'll need to make your payment by 1 January 2020. The payment is made once a year if your profits fall below £1.5 million. Payment is made in instalments for businesses with profits exceeding £1.5 million.


What is the current corporation tax rate?

The current rate is 19% for the 2019/20 tax year. For the tax year starting 1 April 2020, the rate will be reduced to 18%.

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How to reduce your Corporation Tax bill

As a small business owner, staying on top of your finances can seem overwhelming, particularly when you're just starting out.

One of the key areas you need to keep an eye on is your taxes, and that's tricky subject to navigate. You want to reduce your tax bill wherever possible-and be in the good books of HMRC while doing so.

Below, we'll share a few simple tactics you can implement to reduce your Corporation Tax. Keep in mind that these are tactics that apply to businesses in general, and depending on your situation or industry, there could be other tax reliefs that may apply.

And as your business grows, there may be allowances or deductions that you now qualify for, but missed out on applying for previously. As such, we highly recommend checking in with our accountants at Forma to clarify any tax issues you're unsure about.

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How do I pay Corporation Tax?

There are various ways you can make your corporation tax payment:

  • Same day or next day payments: CHAPS, online or telephone banking (Faster Payments)
  • Three working days: BACS bank transfers, Direct Debit, debit or credit card payment online, payment at a bank or building society
  • Five working days: Direct Debit (if you haven't set up a Direct Debit previously)
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How do I reduce corporation tax?

You can reduce your corporation tax bill by:

  • Claiming your business expenses
  • Paying yourself a salary
  • Taking advantage of HMRC's incentives for early tax payment
  • Taking advantage of tax allowances and reliefs
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How much is UK corporation tax?

The corporation tax rate for the 2020/21 financial year is 19%. The corporation tax rates for previous years are listed on the HMRC website.

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What is a Company Tax Return, CT600?

All active limited companies in the UK are required to file a company tax return, otherwise known as the CT600 form.

The CT600, along with supporting documents are submitted to HMRC annually to report a company's spending, profit and corporation tax to HMRC.

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What is Corporation Tax?

Corporation tax refers to tax you pay on the profits earned by your company. You'll need to register for corporation tax within three months of trading commencing.

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What is the UK Corporation Tax rate?

The corporation tax rate for company profits is 19%.

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When do I pay Corporation Tax?

Your corporation tax bill is due nine months and one day after the end of your accounting period. For example, if the end of your accounting period falls on 31st March, your corporation tax payment will be due on 1st January.

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When is corporation tax due?

Your corporation tax bill is due nine months and one day after the end of your accounting period. Do note that in the first year of setting up your company, your annual accounts will typically cover more than 12 months-and as such, you'll have two payment deadlines for your corporation tax.

Different payment rules and deadlines will apply if your taxable profits amount to more than £1.5 million.

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When is my company tax return due?

The deadline for filing your company tax return is 12 months after the end of the accounting period it covers.

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When must I pay my corporation tax?

Your corporation tax bill is due nine months and one day after the end of your accounting period. Do note that in the first year of setting up your company, your annual accounts will typically cover more than 12 months-and as such, you'll have two payment deadlines for your corporation tax.

Different payment rules and deadlines will apply if your taxable profits amount to more than £1.5 million.

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