Updated: Jun 7, 2025
Corporation Tax
Stay compliant and tax-efficient with expert corporation tax support. We handle everything from calculations to HMRC submissions, helping limited companies reduce liabilities and avoid costly mistakes.
Corporation Tax is a key consideration for every UK limited company. At Reaveley Cooper Accountants, we provide expert guidance to help your business understand its Corporation Tax obligations, remain compliant, and optimise tax efficiency.
What Is Corporation Tax?
Corporation Tax is a tax on the profits made by UK companies and other organisations, including clubs, societies, and associations. All limited companies must calculate, report, and pay Corporation Tax on their taxable profits, which include trading profits, investment income, and chargeable gains.
Corporation Tax Rates for 2025/26
The Corporation Tax rate your company pays depends on its level of taxable profits:
Profit Band | Corporation Tax Rate | Notes |
|---|---|---|
£0 – £50,000 | 19% | Small Profits Rate |
£50,001 – £250,000 | 19% – 25% | Marginal Relief applies, creating a tapered effective rate |
Over £250,000 | 25% | Main Rate |
Marginal Relief: Companies with profits between £50,001 and £250,000 benefit from Marginal Relief, which gradually increases the effective tax rate from 19% up to 25%.
Associated Companies: If your company is part of a group or has associated companies, the thresholds for the small profits rate and Marginal Relief are divided among all associated companies.
Key Corporation Tax Responsibilities
Register for Corporation Tax: All new companies must register with HMRC within three months of starting to trade.
File a Company Tax Return: Submit your annual tax return (CT600) and supporting accounts to HMRC, usually within 12 months of your company’s year-end.
Pay Corporation Tax: Payment is due nine months and one day after the end of your company’s accounting period.
Keep Accurate Records: Maintain detailed records of income, expenses, and company activities for at least six years.
Failure to file or pay on time can result in penalties and interest charges.
Recent Updates and Allowances
The Corporation Tax rates and thresholds remain unchanged for the 2025/26 tax year.
Special rules apply for certain industries (e.g., oil and gas companies) and for close investment holding companies, which are taxed at the main rate regardless of profit.
Capital allowances, such as the 100% first-year allowance for zero-emission vehicles and charging points, continue to offer tax relief for qualifying investments.
How Reaveley Cooper Accountants Can Help
Our team offers:
Proactive tax planning to minimise your Corporation Tax liability
Preparation and submission of accurate company tax returns
Guidance on allowable expenses, capital allowances, and reliefs
Support with HMRC correspondence and compliance checks
Get Support with Corporation Tax
Staying on top of your Corporation Tax obligations is critical for your company’s reputation and financial health. Reaveley Cooper Accountants provide tailored advice and comprehensive support, ensuring you meet deadlines, maximise allowances, and avoid costly mistakes.
How much does Corporation Tax help cost?
Clear, compliant corporation tax returns that make sure you’re only paying what you need to, not a penny more.
From
£500
+VAT per year