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Corporation Tax · Limited Companies

Corporation Tax & Year-End Accounts

Your year-end accounts and corporation tax return are two of the most important documents your limited company produces. We prepare them accurately, identify every available allowance, and file everything with Companies House and HMRC on time.

What's included

  • Full year-end statutory accounts
  • Corporation tax computation and CT600 return
  • Companies House filing
  • Director's report and balance sheet
  • Capital allowance review and claims
  • Tax planning advice for the next year

All-inclusive corporation tax

One fixed fee covering your accounts, CT600, and Companies House filing. We tell you the cost upfront — no bill surprises at year end.

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Corporation Tax rates and deadlines

The main rate is 25% on profits over £250,000, and the small profits rate is 19% on profits up to £50,000. Between the two, marginal relief gives an effective rate somewhere in between.

Worked example. A company has taxable profit of £120,000. Tax is 25% of £120,000, which is £30,000, less marginal relief of 3/200 of the £130,000 gap to £250,000 (£1,950), giving £28,050. That is an effective rate of about 23.4%. The £50,000 and £250,000 limits are divided by the number of associated companies and shortened for accounting periods under 12 months.
WhatDeadline (private limited company)
Pay Corporation Tax9 months and 1 day after the end of the accounting period
File the CT600 return12 months after the end of the accounting period
File accounts at Companies House9 months after the year end
First accounts21 months after the date of incorporation

A late CT600 carries a £100 penalty, rising to £200 after three months, and further penalties based on unpaid tax if it is six months or more late. Companies House charges its own penalties for late accounts.

Points that regularly cost directors money

  • Director's loan account: if it is overdrawn at year end and not repaid within nine months and one day, the company pays tax on the balance at 33.75%.
  • Capital allowances: the Annual Investment Allowance gives 100% relief on qualifying equipment up to £1 million a year, but not on cars.
  • Pension contributions: employer contributions are normally deductible, and may reduce corporation tax and avoid personal tax and National Insurance.
  • Losses: trading losses can generally be carried back or forward, and the timing needs to be planned.

Directors also have a personal side. See our personal tax service and sole trader or limited company comparison.

Sources: GOV.UK: Corporation Tax rates, GOV.UK: Corporation Tax, when to pay and file.

Frequently Asked Questions

What is the corporation tax rate in the UK?

From April 2023, the main rate is 25% for profits over £250,000. A small profits rate of 19% applies to profits under £50,000. Marginal relief applies between the two thresholds.

When is the corporation tax deadline?

Payment is due nine months and one day after the end of your accounting period. Your CT600 return must be filed within 12 months of the period end.

Can you prepare my company accounts and corporation tax return?

Yes. We prepare statutory accounts and CT600 returns for Brighton limited companies, filing with Companies House and HMRC on your behalf.

When is Corporation Tax due?

Corporation Tax is payable nine months and one day after your accounting period ends. The CT600 return is due 12 months after the period end, so the payment date comes first.

What is the Corporation Tax rate for small companies?

The small profits rate is 19% on profits up to £50,000. The main rate is 25% on profits over £250,000. Marginal relief applies between the two, so the effective rate rises gradually.

What happens if my director's loan is overdrawn at year end?

If it is not repaid within nine months and one day of the year end, the company pays tax on the outstanding balance at 33.75%. The tax is repayable when the loan is repaid.