Corporation Tax is a tax UK limited companies pay on their taxable profits — it isn't deducted automatically, so companies need to calculate, report and pay it themselves.
1. Register for Corporation Tax
This is generally done shortly after a company starts trading, through HMRC's online service.
2. Calculate Taxable Profits
Once your accounting period ends, taxable profits are calculated based on your company's accounts, with certain adjustments applied for tax purposes.
3. File a CT600
The CT600 is the Company Tax Return used to report profits and calculate the Corporation Tax owed, submitted alongside your accounts and tax computations.
4. Pay What's Due
Corporation Tax payment is generally due before the CT600 filing deadline — the two dates aren't the same, so it's worth checking both.
This guide provides general information only. Rates and thresholds can change, so it's worth confirming current figures with HMRC or your accountant.