Find out how much your small business will be sending to the tax man with our simple corporation tax calculator for UK businesses in 2020 / 2021.
Yes, that’s right, more tax 😄. Ok, maybe not quite ‘like’, but you’re liable to pay more tax when you generate more revenue. So increasing your company’s revenue is the result of an increase in your sales and profit margins. That’s where we (Reldesk) can help. Reldesk manages your customers, prospects and sales pipeline, maintaining relationships with existing customers, and helping you find new ones. It also shows you who your most valuable customers are. Find out more or Sign up for a demo on how it can help your business.
It’s a tax on company profits and is paid every year, based on your company tax accounting period. It’s also usually your company’s financial year (which can be different to the normal tax year).
In some ways, corporation tax is to businesses what income tax is to individuals. As a small business you pay corporation tax on net profits by generally doing the business, but also investing and selling assets as a company.
The Corporation Tax main rate (excluding ring fence profits) is currently at 19% for 2020/21 and has been for years starting 1 April 2017, 1 April 2018 and 1 April 2019.
If you do business as any of the following, you will have to ensure you pay corporation tax:
For the tax year starting 1 April 2021 (so 2021/22) it will stay the same at 19%, which was announced by the government in the 2020 budget.
You must file a corporation tax return before 12 months has passed since the end of the accounting period it covers, otherwise you’ll have to pay a penalty. However, you must pay your corporation tax bill (if an amount is payable), usually 9 months and 1 day after the end of the accounting period.
It’s calculated using the percentage for the tax year (shown above) and applied to taxable profits
Yes, personal service companies such as contractor limited companies are required to pay it on their profits.
The HMRC have more information on corporation tax rates, registration and more.