Quick Overview

Corporation Tax is a tax UK limited companies pay on their taxable profits. Unlike Income Tax, it isn't deducted automatically — companies need to calculate, report and pay it themselves, generally with support from an accountant.

Who This Guide Is For

This guide is for directors of a UK limited company who want to understand their Corporation Tax obligations.

What You May Need

  • The company's accounting records for the relevant period
  • A registered HMRC online account for Corporation Tax
  • A completed Company Tax Return (CT600)

Step-by-Step Process

  1. Register for Corporation Tax. This is generally done shortly after the company starts trading.
  2. Keep accurate accounting records throughout the company's financial year.
  3. Calculate taxable profits once the accounting period ends, based on the company's accounts.
  4. File a Company Tax Return (CT600) with HMRC, along with your accounts.
  5. Pay any Corporation Tax due, generally before the return filing deadline.

Important Considerations

Corporation Tax deadlines for payment and for filing the return are different, and payment is often due before the return itself. Rates and thresholds can change, so it's worth confirming current rates with HMRC or your accountant rather than relying on past figures.

This guide provides general information only and is not personalised tax advice.