A host of new tax changes affecting businesses and individuals came into effect on 1 April 2015 such that from 1 April 2015 there is a single Corporation Tax rate of 20% for profits.
Previous rates - The rate of tax on profits before 1 April 2015 depends on the level of the profits:
|Profits||Rate||From 1.4.15||From 1.4.14||From 1.4.13|
|£300,000 or less||Small profits rate||20%||20%||20%|
|Above £300,000||Main rate||20%||21%||23%|
Marginal Relief is available on profits between £300,000 and £1.5 million made before 1 April 2015.
In the Summer Budget 2015, the government announced legislation setting the Corporation Tax main rate at 19% for the years starting the 1 April 2017, 2018 and 2019 and at 18% for the year starting 1 April 2020. In the Budget 2016, the government announced a further reduction to the Corporation Tax main rate for the year starting 1 April 2020, setting the rate at 17%.
Corporation tax is charged on the profits of companies and of unincorporated bodies that are not partnerships, for example members' clubs. The term “profits” includes all sources of income and capital gains. The rate of corporation tax is fixed by reference to financial years. The financial year commences on 1 April and thus the financial year 2017 is the year commencing on 1 April 2017.
Company and Corporation tax deadlines:
|File accounts with Companies House||9 months after your year end|
|Pay Corporation Tax||9 months after your year end|
|File a Company Tax Return||12 months after your year end|
We can help you set up and manage your business’s finances so you achieve your strategic goals with minimum tax liability.
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