Corporation Tax

CORPORATION TAX

Corporation Tax is rarely just a once-a-year form to file. Handled well, it becomes one of the most powerful levers you have for protecting profit, funding growth and rewarding the people who built your business. Handled badly, it quietly drains cash and invites avoidable risk. At TaxDigit, chartered certified accountants in Guildford, Surrey, we make sure it is always the former.

We work with company directors who are tired of feeling like tax "just happens" to them. Instead of a reactive scramble before every deadline, we give you a clear, forward-looking plan — so you always know what you will owe, when, and how to legitimately pay less.

The problems we solve for you

Most growing companies lose money to tax not through wrongdoing, but through missed opportunities and last-minute filing. We remove that uncertainty.

• Surprise tax bills — we forecast your liability early so cash is never a shock.
• Missed reliefs — we actively claim R&D, Capital Allowances and other reliefs you are entitled to.
• Deadline stress — accurate returns, filed early, every single year.
• Disjointed advice — Corporation Tax planned alongside VAT, PAYE, CGT and Personal Tax.

Why companies choose TaxDigit

We do far more than file your return. We get to know you and your business — your plans, your industry, your personal circumstances — and build the tax strategy around them, from startup to exit.

• A named, qualified accountant who actually understands your company.
• Proactive, year-round planning — not a single annual phone call.
• Plain-English advice, with no jargon and no nasty surprises.
• Trusted UK tax advisors used by businesses across Guildford and Surrey.

There are many aspects of business tax to consider

Specialist knowledge from our team of experts ensures your company takes advantage of every available relief — such as R&D and Capital Allowances. But Corporation Tax is only one piece of the puzzle. It needs to be viewed alongside VAT, PAYE, Capital Gains Tax and Personal Tax, so we make sure every aspect is planned for, properly administered and your payments advised well in advance.

Speak to a Corporation Tax specialist

Frequently asked questions

When is Corporation Tax due?

Corporation Tax is normally payable nine months and one day after your company’s year end, with the CT600 return due twelve months after year end.

How can my company reduce its Corporation Tax?

Through allowable expenses, capital allowances, R&D relief and sensible profit-extraction planning. We identify the reliefs that apply to you.

Do you prepare and file the CT600?

Yes. We prepare your Corporation Tax computations and file the CT600 directly with HMRC.

What is the UK Corporation Tax rate for 2026/27?

The main rate is 25% on profits above £250,000. Companies with profits of £50,000 or less pay the small profits rate of 19%, and profits between £50,000 and £250,000 attract marginal relief, so the effective rate rises gradually from 19% to 25% (source: GOV.UK, Corporation Tax rates and reliefs).

Do associated companies change the Corporation Tax thresholds?

Yes. The £50,000 and £250,000 limits are divided by the number of associated companies plus one, and are also reduced proportionately for accounting periods shorter than 12 months. A group of four companies therefore shares the thresholds, which can push each one into the 25% rate sooner.

When does a company have to pay Corporation Tax by instalments?

Companies with taxable profits above £1.5 million (reduced where there are associated companies) pay in quarterly instalments rather than nine months and one day after year end. Very large companies, with profits above £20 million, follow an accelerated instalment timetable.

When must a new company register for Corporation Tax?

HMRC must be told within three months of the company starting any business activity, such as buying, selling, employing someone or advertising. Registration is done online using the company's UTR, which HMRC posts to the registered office after incorporation.

Does a non-UK resident company pay UK Corporation Tax?

A company that is not UK resident pays UK Corporation Tax only on profits of a UK permanent establishment, and since April 2020 on UK property rental profits. Whether a UK branch, a UK subsidiary or no UK taxable presence arises depends on where the business is actually carried on, which is a question we review for every overseas client.