What Are The HMRC Corporation Tax Rates At The Moment?

Please note, this blog was written in June 2023
As a business owner, it is crucial to keep up to date with the ever-changing tax laws and rates in the UK. Corporation Tax, in particular, is an essential tax that businesses must pay on their profits. In this blog post, we find out the answer t the question; what are the HMRC Corporation Tax rates at the moment?

Currently, the rates of Corporation Tax in the UK start from 19%. It is worth noting that there are different tax rates for different types of businesses and income levels. Small profits up to £50,000 are taxed at a lower rate of 19%. In contrast, profits exceeding £250,000 are taxed at the higher rate of 25%, which is also known as the main rate.

For companies with profits between £50,000 and £250,000, there is a special tax rate called the Marginal Relief Scheme. This is therefore designed to provide a tax break for these businesses. As such, they are taxed at a rate between the 19% and 25% rates.

In conclusion, it is crucial to remain up to date with the current Corporation Tax rates in the UK. This will enable business owners to plan and manage their finances effectively. At present, the standard Corporation Tax rate is 19%. With lower rates for small profits and higher rates for large profits. However, it is essential to keep an eye on any proposed changes to the tax system as it’s known to change frequently. By doing so, business owners can prepare accordingly and ensure they are in compliance with HMRC regulations. Therefore you can avoid any larger than expected bills.

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If you’re unsure on what Corporation Tax rate you should be paying, we would always recommend talking to your accountant. They should be in the best position to assist. For any tax loan requirements for your business, please call Corporation Tax Loans on 01494 611 462.