Corporation Tax
[noun] /ˌkɔː.pəˈreɪ.ʃən tæks/
Definition
Tax you pay on business profits, when registered as a limited company.
Glossary
Tax you pay on business profits, when registered as a limited company.
You must pay Corporation Tax on profits from doing business as a limited company.
You must register for Corporation Tax when you start working for yourself as a limited company.
Corporation Tax is 25%, or 19% for companies with profits below £50,000.
As an individual, you'll still be paying Income Tax on any money you earn from your business, but Corporation Tax is a separate tax payable by the company.
If you're registered as a sole trader, Corporation Tax is unlikely to apply to you.
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