orporation tax is one of the most important obligations for UK businesses. Whether you run a small limited company or manage a growing enterprise, understanding how corporation tax works can save you time, money, and stress. Failure to comply can lead to penalties, while smart tax planning can improve your bottom line.
At Horizon and Co, we specialize in corporate accounting services, tax consultancy services, and corporate tax management to help businesses stay compliant and tax-efficient. In this guide, we’ll break down everything you need to know about corporation tax in the UK.
What is Corporation Tax?
Corporation tax is a tax on the profits of limited companies and certain organizations operating in the UK. If your business is incorporated, you are legally required to pay corporation tax on taxable profits, which include trading income, investments, and chargeable gains.
Unlike income tax, there is no personal allowance for corporation tax. Every pound of profit is taxable. This is why working with a corporate tax consultant or professional tax consultant is essential for accurate calculations and compliance.
Current Corporation Tax Rates
As of now, the main corporation tax rate for UK companies is 25% for profits above £250,000. For companies with profits below £50,000, a small profits rate of 19% applies. Businesses with profits between these thresholds pay a marginal rate.
Missing deadlines or underpaying can result in penalties and interest charges. That’s why many businesses rely on tax filing and compliance services and expert tax planning services to avoid costly mistakes.
How to Calculate Corporation Tax
Corporation tax is calculated on your company’s taxable profits after deducting allowable expenses. These expenses can include salaries, office costs, and certain investments.
However, the rules can be complex. For example, capital allowances and R&D tax credits can significantly reduce your tax bill if claimed correctly. A certified tax consultant or chartered tax consultant can help you maximize these benefits while ensuring compliance.
Use Our Corporation Tax Calculator
To make things easier, we’ve built a Corporation Tax Calculator right on our website. This tool allows you to:
Quickly estimate your corporation tax based on your profits.
Factor in allowable expenses and deductions.
Get an instant overview of your potential tax liability.
Using our check here calculator is a great first step toward understanding your tax obligations. For a more detailed and personalized plan, contact Horizon and Co tax consultancy for expert tax planning services and corporate accounting solutions.
Common Mistakes Businesses Make
1. Missing Filing Deadlines
One of the most frequent errors is failing to submit corporation tax returns on time. HMRC imposes strict penalties for late filing, which can quickly add up. Using tax filing and compliance services ensures you never miss a deadline.
2. Incorrectly Claiming Expenses
Businesses often claim expenses that are not allowable, leading to HMRC challenges and potential fines. A professional tax consultant or chartered tax consultant can help you identify legitimate deductions and avoid costly mistakes
3. Failing to Plan for Tax Liabilities
Without proper planning, businesses may face unexpected tax bills that disrupt cash flow. Strategic tax planning and advisory services can help forecast liabilities and optimize your tax position.
At Horizon and Co tax consultancy, we provide:
Tax compliance solutions to keep your business aligned with HMRC rules.
Tax audit assistance to protect you during inspections.
Corporate accounting services for accurate financial management.
Partnering with a business tax consultant or tax advisor ensures your company avoids these common pitfalls and stays financially healthy.
How Corporate Accounting Services Help
Managing corporation tax isn’t just about filing returns, it’s about strategic planning. Here’s how our corporate accounting services support your business:
1. Bookkeeping and Tax Filing
Accurate bookkeeping is the foundation of compliance. We ensure your financial records are precise and up-to-date, making tax filing and compliance services stress-free.
2. Tax Planning and Advisory
Our expert tax planning services help you reduce liabilities legally and strategically. We analyze your business structure and recommend tax-efficient solutions.
3. VAT and GST Services
If your business trades internationally, managing VAT and GST can be complex. Our team provides VAT and GST services to keep you compliant across borders
4. Financial Consultancy Services
Beyond tax, we offer financial consultancy services to support long-term growth. From budgeting to forecasting, we help you make informed decisions
By partnering with a tax consultant firm like Horizon and Co, you gain access to affordable tax consultant solutions tailored to your business needs.
Why Choose Horizon and Co?
At Horizon and Co, we are more than just a tax consultant firm—we are your strategic partner in financial success. Our team of corporate tax consultants and professional tax advisors ensures your business remains compliant while optimizing tax efficiency.
Whether you need tax consultant for small business, tax consultant for companies, or online tax consultant services, we have you covered. Contact us today for expert tax planning services and corporate accounting services that drive growth.