Tax preparation for companies is an area where the majority of business owners stand on the offensive. So, as the head of a business, I admit that dealing with the company’s tax payments is a very complicated and intense process. Nonetheless, with good knowledge and proper planning, it undoubtedly becomes possible to make your way through the high financial mountain. In this guide, I’ll be giving some valuable tips on how to deal with your business corporation’s tax requirements, deadlines to be met, and the necessary filing process.
Understanding Corporation Tax
Corporation tax is the government’s share of a company’s profits, particularly profits from trading, which are paid by limited companies in the UK. In the fiscal year 2023/24, the main rate is 25% up to a £250,000 profit for companies, while marginal relief allows companies with a profit between £50,000 to £250,000 to pay a rate between 19% and 25% if the amount is less or above £250,000. A 19% rate for companies with profits under £50,000 is still in force.

Key Rules and Regulations
I believe that sticking to what the HMRC requires ensures I succeed.
- Trading profits, investment income, and chargeable gains are the components of taxable profit.
- Qualifying for corporation tax is a company’s responsibility, and they should bear their tax liability.
- The taxes imposed on the profit remain after the business has made allowances for all the expenses and taxes the corporation is allowed to deduct under tax rules.
Filing Requirements
Form CT600, also known as a Company Tax Return, must be filed annually by companies to comply with HMRC.

- Company accounts
- Tax calculations
- Claims for tax allowances and reliefs
You can also read this article: How to Manage Employee Benefits & Complete P11D Reporting
Important Deadlines
- Submit your debt return within a period of 12 months of termination of your accounting period.
- Make your corporation tax payment 9 months and 1 day after your accounting period closes.
Calculating Your Corporation Tax
Calculating your company’s tax obligation revolves around the issue of the final profit the company has got. These are the income sources:
- Trading income. Of course, this is the principal amount companies receive by offering their goods and services to customers.
- Interest, dividends, rent: Then come the passive investments income.
- Capital gains: On the other hand, companies can enjoy the profit obtained if a higher price is offered for the property they are selling.
Tax Allowances and Reliefs
Applying the right subsidies can be the ground for significantly reducing your corporation tax bill. The most important ones are:

- There are a Total Allowable Amounts of £1 million which can be invested
in qualifying plant and machinery, a 100% tax relief would be obtained afterwards. - Companies can claim up to 33% of their R&D expenses if they have a proper R&D patent, and they can also use the government’s Research and Development Tax (R&DT) credits.
- There are even lower tax rates on the profits derived from patented innovation.
Seeking Professional Advice
This guide aims to cover this whole topic thoroughly, but that is just my advice, so the best idea is for you to reach a professional immediately. If you are lucky and hard-working enough and you follow the laws, the government may even pay your taxes using the tax reliefs they offer. Things to remember:
- Be versed about the current tax rates and regulations
- Keep your financial records maintained and updated
- Don’t be late with the tax process
- Research and use relevant tax breaks
- Consult with professionals if you are at a loss
The constructive steps outlined above are intended to make the Corporation Tax process easier and help you comply with the tax rules without problems.
You can also read this article: The Autumn 2024 Budget: Details You Need To Know