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John M Taylor & Co | Accountants Paisley/Taxation/Vat Returns/Business Start Ups/Sage/Payroll/Bookkeeping

Guide to UK Taxation for Limited Companies

What are the current Corporation Tax rates?
Corporation Tax Rates and bands are as follows -


Financial Year To

31 March 2013

31 March 2014

31 March 2015

Taxable Profits

 

 

 

First £300,000

20%

20%

20%

Next £1,200,000

23.75%

21.25%

20%

Profits over £1,500,000

23%

21%

20%

Tax Credit on Dividends

10%

10%

10%

Marginal Relief Fraction

3/400

N/A

N/A

 
When is Corporation Tax Payable?
Corporation tax is payable in a different manner dependent upon whether or not you are classed as a small and medium sized company (SME) or a large company.

  • Small & medium sized companies

Corporation Tax is payable nine months and one day after the end of the accounting period.

  • Large companies

Large companies are different in that they are required to pay their corporation tax in instalments rather than pay it in one lump sum. The instalments and balancing payment are due as follows:-

Instalments - instalments towards your corporation tax liability are payable on the 14th day of the seventh, tenth, thirteenth and sixteenth month after the commencement of a twelve month accounting period. This means that for a company with an accounting year ending 31 December 2013 instalments will be payable on 14th July & 14th October 2013 and also 14• January and 14 April 2014.

Balance - The balance of corporation tax payable for a particular accounting period will be due nine months and one day after the end of the accounting period. Using an accounting period of 31 December 2013 this would mean that the balance of corporation tax payable for that period would be payable by 1 October 2014.

We hope that you have found this guide useful. If you would like some further advice or assistance please contact us.