# @kcaaccountants on Instagram

- **Type:** Image
- **Original URL:** https://www.instagram.com/p/CU__yZjKf3Z
- **Gondola URL:** https://gondola.cc/posts/10052613-kcaaccountants-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/624003558c.jpg
- **Posted:** 2021-10-14T07:02:58.000+00:00
- **Account Owner:** KCA Accountants (@KCAaccountants) — https://gondola.cc/KCAaccountants

## Caption

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limited company profits after salaries and other allowable business expenses have been paid, but before dividends are withdrawn.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 £13,300 being owed to HMRC.

Corporation tax is payable within 9 months and 1 day of the company’s financial year-end.

Whilst the current rate of corporation tax is the same for all limited companies, irrespective of their size or profits, this is due to change from the 1st April 2023 when the rate of tax charged will be based on the amount of profit a company makes.

Here endeth the very quick lesson (test on Friday!). Share this with anyone you think might find it useful and as always if you have any questions, let us know. We're happy to help.
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#CorporationTax #TaxExplained #UKTax #UKAccountants #EssexAccountants #LeighOnSea #SouthendOnSea #LocalBusiness #SmallBusinessAccountants #Smes #TaxForBusiness

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## Tags

corporationtax, smes, essexaccountants, ukaccountants, taxforbusiness, smallbusinessaccountants, taxexplained, uktax, localbusiness, leighonsea, southendonsea

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