Use our Corporation Tax Calculator to find out the amount of corporation tax you need to pay.
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 2022, you'll need to make your payment by 1 January 2023. 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 2022/23 tax year.
- HMRC's guide on corporation tax
- HMRC's guide on registering for corporation tax
- Rates and allowances: Corporation tax
- How to reduce your corporation tax bill