What is Corporation Tax?

Corporation tax is paid by limited companies on their profits.

Your company’s profit is the total turnover for the financial year, minus all outgoings – including salaries, mileage and expenses. You must then pay corporation tax on the remaining profit. Corporation tax is currently 19% (from the 1st April 2017) for small businesses. The profit available after paying corporation tax is available to be paid as dividends.

Corporation tax is entered on a Corporation Tax Return (CT600), which is due 9 months after the end of the company accounting year.