Corporation tax
Corporation tax rates and bands are as follows:
| Financial year to | 31 March 2022 | 31 March 2021 |
| Taxable profits - main rate | 19% | 19% |
| Corporation tax on outstanding loans to participators | 32.5% | 32.5% |
| Diverted profits | 25% | 25% |
Corporation tax payable
For small and medium-sized companies
- 9 months and 1 day after the end of the accounting period
For large companies
- Instalments:
The 14th day of the 7th, 10th, 13th and 16th months after the commencement of a 12-month accounting period.
- Balance:
9 months and 1 day after the end of the accounting period.
A large company is one whose taxable profits are over £1.5m. The £1.5m threshold is divided by the number of companies in the group.
Different rules apply for very large companies with taxable profits of £20m or more. These companies are required to pay corporation tax in quarterly instalments in the third, sixth, ninth and twelfth months of their accounting period. The £20m threshold is divided by the number of companies in the group.
Find out what we can do for you
If you have any questions, or would like to find out how we can help you or your business, give us a call on 01582 540800 and book a free appointment today. Alternatively, you can get in touch with us by filling in our contact form.