Need a quick lesson in corporation tax? Well, here it is... Corporation tax is the main tax that limited companies have to pay. Unlike sole traders, who pay any income tax or national insurance on their profits, a limited company pays corporation tax on its business profits. It's applied to your limited company profits after salaries and other allowable business expenses have been paid, but before dividends are withdrawn. How Much Corporation Tax Will I Pay?🤔 The current rate for corporation tax is 19%. Sole traders and PAYE employees have a tax-free allowance but corporation tax doesn't include this. It also doesn’t have a scale of ascending charges based on how much you earn. Any, and all profits made will be subject to a 19% corporation tax deduction. For example; If at the end of the tax year your limited company has earned £100,000 and accumulated allowable expenses of £30,000, the business profits would sit at £70,000. 19% tax on profits of £70,000 would equal a sum of £13...