⚠️ Hey, you are using an outdated web browser.
TaxScouts might not work with your browser. Upgrade here

Let us sort your Self Assessment online. £119, all in. Learn more

Corporation tax

Corporation tax, also known as company tax, is a tax paid by businesses based on their annual profits. 

If you run a limited company, the rate of corporation tax that you pay is 19% – and unlike for sole traders, you don’t get a tax-free Personal Allowance to reduce corporation tax.

Who needs to pay company tax?

It’s not only limited companies who pay corporation tax. Actually, you have to pay if you’re any of the following organisations and you make profit:

  • Any foreign company with a UK branch or office
  • A club
  • A co-operative 
  • A community group
  • A sports club
  • Housing associations

How to pay corporation tax?

Before you pay company tax, you need to register your company via Companies House and register to pay with HMRC. This is a single process unless you registered your company by post, with third-party software or using an agent. If you did any of these three things, you should register to pay corporation tax separately from when you register with Companies House.

What do I need to register?

To register to pay with HMRC, make sure you have these three things to hand:

  1. Your company’s registration number
  2. The date you started trading 
  3. The date your annual accounts are made up to

Hey there! We really hope this article helped you. Tax matters can be a dreadful topic at times. We know. That's why we started TaxScouts.
A stress-free way to getting your taxes done.

Have a minute? See how it works

More guides & useful information

Let us sort your Self Assessment online. £119, all in.

That’s right. No matter how complicated it gets or why you need to do a return in the first place, it’ll cost £119 to get it done. That includes VAT, last-minute changes and all the support you may need.

How TaxScouts works

Answer a few simple questions

And we mean a few. After a couple of minutes of answering questions online we’ll have everything we need to start preparing your tax return.

Then get paired with a tax return accountant

That’s right, you’ll be matched with a real certified accountant who is best suited to prepare your return. Plus, they’re on hand for questions whenever you need.

We file your Self Assessment for you

Once you’ve signed off your return, your TaxScouts accountant will submit your return with HMRC for you.

That’s it! We told you it was simple.