Corporate tax year end planning – tax guide
UK corporation tax has been a flat rate of 19% for most company profits for a number of years however from 1 April 2023, the main rate of corporation tax increased from 19% to 25%, if profits are larger then £250,000, and a new 19% small profits rate of corporation tax was introduced for companies whose profits do not exceed £50,000. If taxable profits fall between the lower limit and upper limit, the taxable profits are charged at the main rate of 25% rate and reduced by marginal relief.
Given the change in rates, when approaching the financial year-end, it is now more important to consider the opportunities that remain via tax reliefs to optimise working capital and business performance prior to the year-end.
PKF Francis Clark has produced a corporate tax year end planning guide which outlines our top tips for companies.