19% up to £50,000
A company with profits of £50,000 or less pays the small profits rate, 19%.
Corporation Tax
Corporation Tax, known before the year ends.
A limited company pays Corporation Tax on its profit: 19% on £50,000 or less, 25% over £250,000, and between the two the main rate reduced by Marginal Relief. The tax is due 9 months and a day after the company’s year ends, and the return 3 months after that. Here is what it asks of a small company, and what Stoneledger does about it.
The rates
It turns on how much the company made.
25% over £250,000
Over £250,000 it pays the main rate, 25%. In between, Marginal Relief reduces the main rate, so the tax rises gradually from one to the other.
Smaller limits, sometimes
The £50,000 and £250,000 limits are cut in proportion for an accounting period shorter than a year, and shared with any associated companies.
HMRC sets out the rates and the reliefs in its guide to Corporation Tax rates.
The dates
Pay first, then file.
Paying
The tax is due 9 months and 1 day after the end of the company’s accounting period, before the return itself. If there is nothing to pay, HMRC still has to be told.
Filing
The Company Tax Return is due 12 months after the accounting period ends, sent through commercial software. The accounts go to Companies House within 9 months of the year end, or 21 months from registering for the first set.
A late return
£200 the day after, another £200 at 3 months, then at 6 months HMRC estimates the tax and adds 10% of what is unpaid, and another 10% at 12 months. Three late returns in a row turn each £200 into £1,000.
HMRC’s own pages: accounts and tax returns for private limited companies and Company Tax Returns.
What Stoneledger does
The tax, the accounts and what you can take out, from one set of books.
- Corporation Tax as the year goes, worked out from the books for the company’s own accounting period, Marginal Relief included.
- The tax in the books each month. A twelfth of the year’s charge is posted monthly, so the profit you see is the profit after tax.
- Your dates, worked from your year end: when the tax is due, when the return is due and when the accounts are due.
- The accounts. The financial statements in each format the company’s size allows, from micro-entity to full, with the inline XBRL file filing needs.
- Dividends and the director’s loan. What is actually available to take, the dividends paid, and the director’s loan with any extra tax on it worked out.
- Every figure opens. Click one and you see the entries behind it. You do not have to take Stoneledger’s word for a number.
What it costs
£8 a month or £50 a year, for a company too.
One plan, with everything in it: the books, Corporation Tax, the accounts, VAT, both sides of CIS, payroll and journals. No price that jumps as the company grows. 30 days free, no card needed. How that compares
A company’s tax and accounts, from its own books.
Corporation Tax as the year goes, the accounts in the format the company needs, and what is available to take out, with every number opening onto the records behind it.