For businesses that are liable for Corporation Tax, changes came in on 1st April 2023 that could make a big difference to your tax bill for the current and future tax years. 

Previously, the rate of Corporation Tax was set at 19% on company profits, but now a tiered system has been introduced which means that the rate paid will depend on the profits. 

  • Businesses with profits below £50,000 will remain at 19% Corporation Tax
  • Businesses with profits above £250,000 will now pay 25% Corporation Tax
  • Businesses with profits between £50,000 and £250,000 will now pay a marginal rate of Corporation Tax, which will be between these 2 rates and increase proportionately inline with the increase in profit between these 2 amounts.

The amount of tax you pay will also be affected if you have associated companies, whether in the UK or abroad, as these bands of £50,000 and £250,000 are shared between associated companies, meaning each company would pay a higher rate of tax more quickly.

Help with business tax

Business tax can be a complex area, with many variables and different circumstances sometimes making a significant impact on the amount of tax that you have to pay to HMRC each year. There are also changes to capital allowances to factor in from April 2023. 

Getting assistance from an experienced team of chartered certified accountants means that your time is freed up to focus on your business itself, while the experts ensure that your tax liability is minimised so that you’re only paying what you need to. 

Make sure that your business is ready for the changes in Corporation Tax by getting in touch with our specialist team.

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