This is a tax levied against the profits a company makes. It includes profits from trading, investments, income from renting out buildings or land and selling assets for more than they cost. Companies based in the UK pay corporation tax on profits from both the UK and abroad. Foreign companies with a UK branch or office here in the UK have to pay corporation tax on the profits from their UK activities.
Corporation tax rates
The amount you have to pay depends on how much profit your company makes. At present there are 2 corporation tax rates:
The small profits rate: companies with profits of less than £300,000 pay corporation at tax 20%.
The main rate: companies that have a profit of more than £300,000 pay corporation tax at 21%.
There is also a marginal rate of 21.25% for companies with profits of between £300,000 and £1.5 million. Companies that fall into this category will be taxed:
From 1 April 2015 the small profits rate will be unified with the main rate into a single rate of 20%.
Reduce your corporation tax bill
There are various opportunities for businesses to reduce their corporation tax bill. Some of these are only available to different sized companies or specific industries.
All businesses can deduct the costs of running the business from profits before tax. This includes salaries, office equipment and pension contributions. So it makes sense to keep careful records of expenditure throughout the year.
Research and development (R&D) relief
There are 2 schemes for claiming relief on R&D expenditure:
SME Scheme: 225% on R&D costs.
This means that for every £100 spent on R&D, corporation tax is reduced by £225.
There are specific rules to determine if a business is an SME for R&D relief.
Large Company Scheme: 130% on R&D costs.
Projects that qualify for R&D relief must aim to improve knowledge or capability in science or technology by solving a scientific or technological uncertainty. They cannot just work on improving their own technology. The government has guidelines that define these terms within the context of R&D relief.
The company will have to provide evidence of how the definition of R&D applies to a project in order to claim the relief.
Costs that qualify for R&D relief:
But remember, you can only claim R&D relief if your business is liable for corporation tax.
Its a fact that Limited companies and most unincorporated associations such as sports clubs and cooperatives have to pay corporation tax. This is a tax levied against the profits a company makes. It includes profits from trading, investments, income from renting out buildings or land and selling assets for more than they cost.
Companies based in the UK pay corporation tax on profits from both the UK and abroad. Foreign companies with a UK branch or office here in the UK have to pay corporation tax on the profits from their UK activities.
Corporation tax rates
The amount you have to pay depends on how much profit your company makes.
At present there are 2 corporation tax rates:
The small profits rate: companies with profits of less than £300,000 pay corporation at tax 20%.
The main rate: companies that have a profit of more than £300,000 pay corporation tax at 21%.
There is also a marginal rate of 21.25% for companies with profits of between £300,000 and £1.5 million. Companies that fall into this category will be taxed:
From 1 April 2015 the small profits rate will be unified with the main rate into a single rate of 20%.
Reduce your corporation tax bill
There are various opportunities for businesses to reduce their corporation tax bill. Some of these are only available to different sized companies or specific industries.
All businesses can deduct the costs of running the business from profits before tax. This includes salaries, office equipment and pension contributions. So it makes sense to keep careful records of expenditure throughout the year.
Research and development (R&D) relief
There are 2 schemes for claiming relief on R&D expenditure:
SME Scheme: 225% on R&D costs.
This means that for every £100 spent on R&D, corporation tax is reduced by £225. There are specific rules to determine if a business is an SME for R&D relief.
Large Company Scheme: 130% on R&D costs.
Projects that qualify for R&D relief must aim to improve knowledge or capability in science or technology by solving a scientific or technological problem.
Have you ever found yourself asking “When can I afford to retire?”, “Can I afford to leave a legacy for my loved ones?”, “How much do I need to be saving for retirement?”. If you have, lifestyle modelling will likely be beneficial for you.
Freshers heading to university this autumn can expect to pay more for their higher education than students graduating this summer, but paying off student loans doesn’t always make financial sense.
Balancing careers, family responsibilities, and personal aspirations can be overwhelming. Amid this whirlwind, women often rally around each other, offering support for both our physical and mental wellbeing.