Know about Corporation Tax

Corporation tax is a tax on the taxable profit of a limited company. Taxable profit is different from accounting profit. For small companies, the corporation tax rate is 20% on the taxable profit. Normally, a limited company does not have to pay any other taxes than corporation tax.

Small companies have to pay their corporation tax liability by 9 months and 1 day after the year-end to HM Revenue and Customs (HMRC). They also have to submit Corporation Tax Return (CT600) by 12 months after the year-end. If you do not pay the tax liability in time or submit CT600 in time, there are penalties and interest in addition to corporation tax liability.

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Know about Income Tax

Income could be non-savings i.e. salary, trading profit, rental income etc, or savings i.e. interest income from bank and financial institutions or dividend i.e. dividend

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