If your limited company makes a profit, you need to pay Corporation Tax on that surplus income. In this post, we discuss what Corporation Tax is, how and when to register with HMRC, and the deadlines for working out and paying Corporation Tax on company profits.
Corporation Tax in the UK is a tax on business profits that applies only to certain types of entities, including:
The following Corporation Tax rates apply in the 2026/27 tax year:
Marginal Relief means that you pay a gradual increase in the rate of Corporation Tax between the small profits rate and the main rate.
Your company will need to pay Corporation Tax on all profits generated in the UK or overseas from buying or selling goods and services (i.e. trading), managing investments, and earning interest.
Corporation Tax also applies to ‘chargeable gains’ when you sell company assets like shares in other firms, equipment and machinery, and real estate.
When you set up a company, one of the first things you will need to do is register with HMRC for Corporation Tax. This should be done no later than three months after starting to do business, which includes:
The easiest way to register for Corporation Tax is to use HMRC’s online registration service. You will need to sign in to (or create) your business tax account and provide the following details:
When you have successfully registered, HMRC will provide you with your deadlines for paying Corporation Tax and filing a Company Tax Return.
The payment deadline for Corporation Tax is nine months and one day after the end of your accounting period for Corporation Tax.
For example, if your accounting period ends on 20 June 2026, your Corporation Tax payment deadline will be 21 March 2027.
You can pay your Corporation Tax bill in many different ways, including online and telephone banking, CHAPS, Bacs, or Direct Debit.
To work out how much tax you owe, you will have to prepare a Company Tax Return. This must be filed 12 months after the end of your accounting period, i.e. three months after your Corporation Tax payment deadline.
The order of these deadlines does cause a bit of confusion, given that your Corporation Tax bill has to be paid before your Company Tax Return is due. Be careful not to mix up these two dates.
If your taxable profits in an accounting period exceed £1.5 million, you will need to pay your Corporation Tax bill in instalments.
You may be able to reduce the amount of Corporation Tax you owe by deducting certain business expenses from profits before tax when you’re preparing your annual accounts and tax return.
These allowable expenses include almost any costs incurred ‘wholly and exclusively’ for business purposes, including employees’ wages, stock, and raw materials, office equipment, rent and utility bills, travel and accommodation, advertising and marketing, and staff training.
However, when you buy business assets like machinery or vehicles, you will need to claim capital allowances on your Company Tax Return instead. You can’t deduct these types of expenses from company income when working out your taxable profit.
We’ve explained what Corporation Tax is and who needs to pay it, how and when to register with HMRC, and the deadline for paying your Corporation Tax bill.
If you have any questions about limited company business taxes, please contact us or leave a comment below.