Corporate Tax Rates:

The United Kingdom employs a tiered system for corporate tax rates. Our experts help you navigate through the complex structure and leverage tax opportunities.

1. Tax Year and Deadlines: The UK follows a standard tax year from April 6th to April 5th of the following year. Corporate tax returns and payments are typically due nine months and one day after a company’s accounting period ends.
2. Tax Deductions and Reliefs: The UK offers various deductions and reliefs for businesses to reduce their corporate tax liability. Standard deductions include expenses directly related to business operations, capital allowances for eligible assets, and research and development (R&D) tax credits.
3. Transfer Pricing Rules: The UK has strict transfer pricing rules in place to ensure that transactions between related companies are conducted at arm’s length. This helps prevent profit shifting to reduce tax liabilities.
4. Controlled Foreign Companies (CFC) Rules: CFC rules are designed to prevent UK companies from shifting profits to low-tax jurisdictions. These rules may impact companies with foreign subsidiaries.
5. Double Taxation Treaties: The UK has an extensive network of double taxation treaties with various countries. These treaties help prevent double taxation of income and provide relief through reduced withholding tax rates on dividends, interest, and royalties.
6. Digital Services Tax (DST): The UK introduced a Digital Services Tax in 2020, targeting tech companies with significant revenues from digital services. This tax is aimed at ensuring these companies pay their fair share of taxes in the UK.
7. Reporting and Compliance: Corporations in the UK must adhere to strict reporting and compliance requirements. This includes filing annual tax returns, maintaining accurate financial records, and adhering to the Making Tax Digital (MTD) initiative for VAT-registered businesses.