Are you new to Corporation Tax in the UK?

If you are running a business in the UK or a foreign company with a UK branch, you should pay and file Corporation Tax to HMRC every year.

This blog is aimed to give insights on Corporation Tax for new businesses in the UK, methods of payment, and the due date to pay.

What is Corporation Tax?

All limited companies, small or large, have a legal obligation to pay taxes on profits earned over one financial year as and when your business starts making a profit. Since 2016, the rate for Corporation Tax has been 19% for all limited companies.

Who pays Corporation Tax?

  • Limited companies registered in the UK
  • Companies overseas with branches in the UK
  • Club, co-operative or other unincorporated associations like community group or sports club

Sole traders and partnerships don’t pay corporation tax, instead they have to fill out a tax return and apply income tax to their earnings.

How to register for Corporation Tax?

When your company is incorporated, you must inform HMRC within 3months. While you register, below are the details you should include,

  • Date you started the business in the UK
  • Company name and registration number
  • Company’s address and type of business
  • Date of the accounting year
  • Details of company’s director

HMRC provides several ways to pay the taxable profits. In case of missed deadlines, HMRC will charge interest on the outstanding amount. On the other hand, if you have paid your Corporation Tax bill early, HMRC will pay interest to your business. Corporation Tax can be paid at your bank, Post Office, or electronically.

When is Corporation Tax due?

Pre-determined dates do not rule payment of Corporation Tax. It is instead defined by your business’ accounting period. You must pay your Corporation Tax 9 months and 1 day after your accounting period ends. To know more in detail check here

In the next blog, we will provide thorough information on filing your Company Tax Return (CT600). To know more about Corporation Tax in detail, write to us at One of our experts will revert back as soon as possible.