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Business Tax Rates and Bands

Corporation tax


2017/18 to 2021/222015/16 to 2016/172014/152013/142012/132011/122010/11
Rate  -  Profits £Effective %Effective %
Effective %
Effective %
Effective %
Effective %
Effective %
Small  -  0 - 300,00019202020202021
Marginal  -  300,001 - 1,500,000192021.2523.752527.529.75
Main  -  1,500,001 & above19202123242628
Fractionn/an/a
1/400th3/400ths1/100th3/200ths7/400ths

Finance Act 2021 provides that from April 2023, the main rate of Corporation Tax will increase to 25% for companies with chargeable profits over £250,000:

  • Companies with chargeable profits of £50,000 or less will still be liable to tax at the current rate of 19%. 
  • Companies with chargeable profits of £50,001 to £250,000 will pay tax at 25% but will have the benefit of marginal relief.
  • The marginal rate fraction will be 3/200ths.
  • The upper and lower limits of the new chargeable profits bands will be apportioned for the number of associated companies in a group.


Capital Allowances

Corporation tax super-deduction on certain plant and machinery                                     130%

First Year Allowance (FYA) on certain plant, machinery and cars of 0g/km                       100%

Corporation tax FYA on long-life assets, integral features of buildings, etc.                      50%

Annual Investment Allowance (AIA) £1,000,000 (£200,000 from 1 January 2022)
Excludes cars

Writing Down Allowance
Long-life assets, integral features of buildings, cars over 50g/km                                       6%
Other plant and machinery                                                                                                        18%
Structures and Buildings Allowance                                                                                          3%                              
 


Car, Van & Fuel Benefits

2021/22
 Cars registered pre 6.04.2020Cars registered after 5.04.2020
CO2 emissions g/km% of list price
taxed
% of list price
taxed
011
1-50

Electric range - 130 or more21
                                   70 - 12954
                                   40 - 6987
                                   30 - 391211
                                   under 301413
51-541514
For every extra 5+1+1
160 and above37n/a
165 and aboven/a37

For fully diesel cars generally add a 4% supplement (unless the car is registered on or after 1 September 2017 and meets the Euro 6d emissions standard) but the maximum is still 37%. For emissions of 75g/km or more if the CO2 figure does not end in a 5 or 0 round down to the nearest 5 or 0.


2021/22
Car fuel benefit£24,600
Van benefit£3,500
Van fuel benefit£669


Value Added Tax


From 1.04.2021From 1.04.2020
Standard rate20%20%
Reduced rate5%*5%
Annual Registration Limit£85,000£85,000
Annual Deregistration Limit£83,000£83,000

*12.5% for hospitality and tourism from 1 October 2021 - 31 March 2022

Whatever your circumstances, whether you have just set up a business or just are looking to see what we as accountants can offer you, we provide a free consultation. These meetings will be at our cost and therefore there is nothing to lose by allowing us to show you how we will be able to assist you or your business.

To arrange a free no obligation consultation, please do not hesitate to get in touch.

Contact us here or call us on 020 8661 7878

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