Corporation tax

Corporation tax rates and bands are as follows:

Financial year to 31 March 2021 31 March 2020
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 fourteenth day of the seventh, tenth, thirteenth and sixteenth 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.

Join us, we’re social

Click here to follow us on Twitter and Facebook and discover the lighter side of accounting at Lakeview.