Corporation Tax is the main direct tax levied on limited companies and other revenue-making organisations in the UK.
At current rates, Corporation Tax is charged at 25% on profits in excess of £250,000. For profits below £50,000, companies pay the Small Profits Rate of 19%. Profits between £50,000 and £250,000 are subject to what is called ‘marginal relief’, or a sliding scale between 19% and 25%.
At these rates, even with the Small Profit Relief, Corporation Tax represents a significant chunk of the overall tax liability businesses face. But at the same time, via a system of various other reliefs and allowances, there is no shortage of perfectly permissible ways to minimise the tax your company has to pay.
This guide will help you to understand:
- the deductions, reliefs and allowances available to reduce your corporation tax bill
- the importance of record-keeping
- how to build tax efficiency into your financial and strategic planning
One final step that can make all the difference is to seek the help of experienced, professional accounting and tax planning specialists. At Xeinadin, we bring together decades of corporate accounting experience and expert knowledge of the tax system to offer personalised tax planning and year-round tax guidance services that are geared towards making businesses as tax-efficient as possible.