UK companies are subjected to UK corporation tax. Corporation Tax is charged on company profits (not revenue) and must be filed annually.

• As of now (2025), the main Corporation Tax rate is 25%. But:
• If your company makes less than £50,000 profit (not the same as revenue), you might pay a reduced rate (as low as 19%) under what's called the small profits rate.
• If you make more than £250,000 profit (don't confuse profit with revenue), you pay the full 25%.
• If you're in between, it's a gradual increase (called "marginal relief").

• You don't get a bill. You must calculate it yourself (or your accountant does it).
• Then you report it to HMRC (the UK tax office) and Companies House.
• You must pay the tax within 9 months and 1 day after your company year ends. Which is usually the same as 9 months post anniversary of your company. This means that if your company is incorporated in January 2024, your company anniversary would be January 2025. And you must file and pay any corporate tax owed before the end of October 2025.

• Let's say your Ltd company made a revenue of £50,000 in the first year.
• The whole £50,000 will not be subjected to corporation tax because UK corporate tax is not based on revenue but profit. The profit will need to be worked by deducting all business expenses (e.g. salaries, office rent, supplies, marketing, web development, etc) to arrive at profit.
• Let's say £40,000 was deducted as expenses from the £50,000 revenue
• This means the profit for the first year was £10,000
• You'd likely pay around 19% of £10,000 profit, which is £1,900.
• You must file your company accounting records and pay the £1,900 corporate tax tax this within 9 months post anniversary of your company

• While not mandatory, an accountant ensures your filings are correct and tax-efficient.
• You might manage without an accountant if:
• Your business is very simple (e.g. one-person freelancing or consulting). You're confident with numbers, bookkeeping, and using HMRC's online services. You use software like FreeAgent, QuickBooks, or Xero that helps calculate and submit tax.
• But You'll Probably Want One If:
• You have employees (PAYE, pensions, payroll rules). You're dealing with VAT, dividends, or multiple income streams. You want to make sure you're claiming all allowable expenses (and not missing tax-saving tricks). You don't want to risk penalties for mistakes or missed deadlines. You'd rather focus on running your business than doing admin.

Your return is due 12 months after your accounting period ends, but payment is due earlier — 9 months and 1 day after. Which is usually the same as 9 months post anniversary of your company. This means that if your company is incorporated in January 2024, your company anniversary would be January 2025. And you must file and pay any corporate tax (accounting records) before the end of October 2025.

Yes, software like Xero, QuickBooks, and FreeAgent help manage your finances.

MTD requires VAT-registered businesses to keep digital records and submit VAT returns using compatible software.

Yes, dormant companies must still file annual accounts and a Confirmation Statement. We offer dormant company accountants and confirmation statement filing services.

Please note that filing and paying corporate tax are two different things. Filing corporate tax is the same as submitting your company's accounting records to Companies House and HMRC. While paying corporate tax is done after filing has been completed and there are profits in the accounting records. This means you have to pay corporate tax from the profit recorded in the accounting records.

We only offer dormant company accounts for companies that did not trade during the accounting period that needs to be filed. If your company has traded during the accounting period we will have to refer you to an independent accountant for corporate tax and accounting assistance.

• VAT is not mandatory for UK companies. It is only mandatory when a company reaches the VAT threshold which is over £90,000 in sales/revenue within any 12 months period.
• That means if the company earns more than £90,000 from selling goods or services within any 12 months time frame, it has to register for VAT and start charging VAT.
• A company can choose to register even if it makes less than £90,000 within any 12 months period or to claim back VAT they pay on supplies.
• Once registered: you have to Add VAT to prices, Keep track of VAT you pay, Send reports to HMRC (usually every 3 months) and pay the difference.

• Let's say you run a company that sells handmade mugs:
• You buy clay and paint to make mugs. You pay VAT on these items (let's say £20 of VAT). You sell your mugs to customers and add VAT to your prices (say you collect £40 of VAT).
• You inform HMRC: "Hey, I collected £40 of VAT from my customers, but I already paid £20 in VAT when I bought supplies."
• So, you only remit £20 to HMRC (that's £40 collected minus £20 paid). That's called "charging and reclaiming VAT."