Companies in the UK pay tax on their income at a rate that changes over time. Where the accounting period does not coincide with the tax period, profits are apportioned between the tax periods.
Corporation tax – rates of tax on profits from 2023–2024
| Daň z príjmu firmy zo zisku | Sadzba |
| 0 - 50,000 | 19% |
| 50,001 - 250,000 | 26.5% |
| >250,000 | 25% |
| Fraction | 3/200 |
Corporation tax – rates of tax on profits from 2017–18 to 2022–23
| Daň z príjmu - firmy (zo zisku) | Sadzba |
| Rovná daň - flat tax | 19% |
Corporation tax – rates of tax on profits from 2010–11 to 2016–17
| Daň z príjmu - firmy (zo zisku) | 2016-17 | 2015-16 | 2014-15 | 2013-14 | 2012-13 | 2011-12 | 2010-11 |
| 0 - 300 000 | 20% | 20% | 20% | 20% | 20% | 20% | 21% |
| 300 001 - 1 500 000 | 20% | 20% | 21.25% | 23.75% | 25% | 27% | 29.75% |
| >1 500 000 | 20% | 20% | 21% | 23% | 24% | 26% | 28% |
| Fraction | 1/400 | 3/400 | 1/100 | 3/200 | 7/400 |
| Cena | Správa firmy Anglicko |
| 250€* | účtovné výkazy a poplatky (Accounts) |
| 250€* | výkaz o štatutároch a sídle + poplatky (Confirmation Statement) |
| 250€* | sídlo ročne |
| od 450€ | daňové priznanie |
| od 1.450€ | zrušenie firmy |
| * závislé na kurze mien €/$ | * závislé na zmenách štátnych poplatkov |
Working With Changing Corporation Tax Rates
Corporation tax rates in the UK are not fixed indefinitely. Governments adjust rates and thresholds from time to time, and in some periods different rates have applied depending on the level of a company’s profits. For directors, this means that understanding the current rules, and how they apply to their own accounting period, is an essential part of financial planning.
Financial Years and Accounting Periods
Corporation tax rates are set for financial years that run from April to March. A company’s own accounting period, however, can end on any date. Where an accounting period straddles two financial years and the rates differ, the company’s profits are apportioned between them, usually on a time basis, and each part is taxed at the rate applicable to that year. This can produce an effective rate that is a blend of two different figures.
Profit Levels and Associated Companies
Where the rate depends on the level of profits, the relevant thresholds may be reduced if the accounting period is shorter than twelve months or if the company has associated companies. A company that is one of several under common control may therefore pay tax at a different effective rate from a stand-alone company with the same profits. It is important to identify associated companies correctly when preparing the tax computation.
Why This Matters for Planning
- Timing of significant income or expenses can affect the rate applied
- Choosing an accounting reference date has practical consequences
- Group structures should be reviewed with the rules on associated companies in mind
- Budgeting for tax payments helps avoid cash flow problems
Staying Up to Date
Because rates and thresholds can change with each budget, always check the figures for the specific period in question rather than relying on older information. The tables on this page show how rates have developed over time, but your accountant should confirm how the rules apply to your company.
If you would like help calculating your company’s corporation tax or planning for future periods, contact eTuls. We provide accounting and tax services for companies in England and can explain your position clearly.