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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 2010 |
31 March 2011 |
31 March 2012 |
Taxable Profits |
|
|
|
First £300,000 |
21% |
21% |
22% |
Next £1,200,000 |
29.75% |
29.75% |
29.75% |
Profits over £1,500,000 |
28% |
28% |
28% |
Tax Credit on Dividends |
10% |
10% |
10% |
Marginal Relief Fraction |
7/400 |
7/400 |
7/400 |
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 2009 instalments will be payable
on 14th July & 14th October 2009 and also 14• January and
14 April 2010.
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 2009 this would mean that the balance of
corporation tax payable for that period would be payable by 1
October 2010.
Did You Know?
Originally scheduled for 1 April 2009, the 1% increase in the small
companies rate to bring it to 22% has again been deferred until
1 April 2011 at the earliest.
We hope that you have found this guide useful. If you would like some
further advice or assistance please contact
us.