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 ÂŁ250,000, and a new 19% small profits rate of corporation tax was introduced for companies whose profits do not exceed ÂŁ50,000. 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.