{"id":9560,"date":"2022-06-04T13:08:15","date_gmt":"2022-06-04T12:08:15","guid":{"rendered":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/?p=9560"},"modified":"2024-04-12T19:14:16","modified_gmt":"2024-04-12T18:14:16","slug":"how-corporation-tax-works","status":"publish","type":"post","link":"https:\/\/www.qualitycompanyformations.co.uk\/blog\/how-corporation-tax-works\/","title":{"rendered":"How Corporation Tax works"},"content":{"rendered":"
\n Last updated: 12 Apr 2024<\/strong>\n <\/div>\n \n

Corporation Tax is a type of business tax that companies pay on their taxable trading profits. In the UK, the rate of Corporation Tax that a company pay depends on their level of profits in a year. When you register a company, you are legally obligated to register for Corporation Tax with HMRC online within three months of starting to trade.<\/p>\n

In this blog, we explain how Corporation Tax works. We also cover how and when to register for it, what counts as taxable profits, how to file Company Tax Returns, and when to pay the tax you owe to HMRC.<\/p>\n

Current UK Corporation Tax rates (2024\/25 tax year)<\/h3>\n

Companies in the UK pay different rates of tax depending on their level of profits. At present, the rates of Corporation Tax in the UK are:<\/p>\n