Introduction
If you’ve recently set up a limited company in the UK, congratulations — you’ve taken an important step toward building a legitimate and scalable business.
But along with the excitement of incorporation comes a key responsibility: paying Corporation Tax.
In this 2025 update, Bizz Consulting Ltd explains everything you need to know — from registration to deadlines, tax rates, and smart planning tips to keep your business fully compliant with HMRC.
What Is Corporation Tax?
Corporation Tax is the tax that limited companies must pay on their profits — that is, the money your business makes after deducting allowable expenses, salaries, and other business costs.
It applies to:
- UK-registered limited companies
- Foreign companies with a UK branch or office
- Clubs, associations, and some non-profit organisations
Unlike self-employed individuals who pay Income Tax, limited companies pay Corporation Tax on their profits.
Corporation Tax Rate for 2025
As of April 2025, the UK Corporation Tax rates are as follows:
| Profit Range | Corporation Tax Rate |
| Up to £50,000 | 19% (Small Profits Rate) |
| £50,001 – £250,000 | Tapered Rate (between 19% and 25%) |
| Above £250,000 | 25% (Main Rate) |
If your company’s profits fall between £50,000 and £250,000, a marginal relief calculation applies, reducing the effective rate below 25%.
When and How to Register for Corporation Tax
After your company is registered with Companies House, you must register for Corporation Tax within 3 months of starting business activities (such as trading, advertising, or buying assets).
Steps to register:
- Go to the HMRC website and sign in using your company’s Government Gateway account.
- Provide your Company Registration Number (CRN) and UTR (Unique Taxpayer Reference).
- HMRC will confirm registration and your accounting period.
Tip from Bizz Consulting Ltd:
We recommend setting up accounting software integrated with HMRC’s systems (such as Xero or QuickBooks) to stay fully compliant with Making Tax Digital (MTD) standards.
Corporation Tax Deadlines
| Activity | Deadline |
| Corporation Tax payment | 9 months and 1 day after the end of your accounting period |
| Company tax return (CT600) | 12 months after your accounting period ends |
For example, if your company year-end is 31 March 2025, your payment is due by 1 January 2026, and your CT600 return by 31 March 2026.
What Expenses Can You Deduct?
You only pay Corporation Tax on profits, so make sure you claim all allowable business expenses. These include:
- Staff wages and employer’s National Insurance
- Rent, utilities, and office supplies
- Accountancy and professional fees
- Business travel and vehicle expenses
- Marketing, advertising, and website costs
- Software and digital subscriptions
- Bank charges and interest payments
Bizz Consulting Tip: Keep detailed records and receipts for at least 6 years — HMRC may ask to review them during an inspection.
For International Directors and Non-Resident Companies
If you’re a non-UK resident director running a UK limited company, you must still register for and pay UK Corporation Tax on UK-generated profits.
However, you may also have tax obligations in your home country, depending on tax treaties.
Our international business consultants can help you structure your operations efficiently to avoid double taxation and stay compliant in both jurisdictions.
Tax Planning Tips for 2025
- Plan director salaries and dividends strategically to reduce overall tax.
- Invest in equipment or technology — many assets qualify for 100% capital allowances.
- Consider R&D tax relief if you innovate or improve products/processes.
- File on time — HMRC penalties can add up quickly.
- Work with a professional accountant (like Bizz Consulting Ltd) to ensure accuracy and compliance.
Penalties for Late Filing or Payment
| Offence | Penalty |
| Late filing (up to 3 months) | £100 |
| Late filing (over 3 months) | Additional £100 |
| Over 6 months late | HMRC estimates your tax and adds 10% of the unpaid amount |
| Late payment | Interest charged daily |
Need Help with Corporation Tax?
At Bizz Consulting Ltd, we specialise in accounting, tax, and international business support for UK and overseas entrepreneurs.
Whether you’re registering a new company, planning for growth, or managing international operations — our expert team ensures your business remains compliant while maximising tax efficiency.
📞 Get in touch today
Email: info@bizzconsulting.uk
