2023-05-22Introduction to UK Corporation Tax
Financial Year |
2020/21 |
2021/22 |
2022/23 |
2023/24 |
Main Rate |
19% |
19% |
19% |
25% |
Small Profits Rate |
N/A |
N/A |
N/A |
19% |
Lower Threshold |
N/A |
N/A |
N/A |
£50,000 |
Upper Threshold |
N/A |
N/A |
N/A |
£250,000 |
(1) |
Late tax returns HMRC has set out the following penalties for those who are late filing a company tax return: One day : £100 fine Three months : Another £100 fine Six months : HMRC will estimate a company’s bill and add a 10% penalty onto what they thinks the unpaid tax will b Twelve months: another 10% is added to the estimated tax bill If filing of tax return is late three times in a row, HMRC will increase the £100 penalties to £500 each. |
(2) |
Late corporation tax payments If the tax wasn’t paid on time, interest will be charged on the amount owing and may also have to pay a penalty or surcharge. If a company can't afford to pay, HMRC suggests contacting them as soon as possible, and may be able to set up a payment plan. HMRC has the power to carry out enforcement actions to recover any money owed. |
(3) |
Inaccurate information If a company tax return is filed and it's found to be inaccurate, HMRC may fine the company. How much a company is penalised depends on whether HMRC believes the mistake was deliberate, or the company tried to hide it, and whether the company voluntarily admit to it before HMRC finds out. |