how dos uk business\ corperation tax work?

Question

is it like income tax on a teir system or is it a set rate

Anonym · Accepted Answer

Hi Josh

Corporation tax is tiered, but at different levels to income tax.

Uk corporation tax is at 21% on the first £300,000 of profits or at 28% on profits over £1,500,000 and at a sliding rate between these two thresholds.  But the sliding scale works out at 29.75% on the difference between £300,000 and £1,500,000.  So a simple way to look at the banding is

21% up to £300,000
29.75% between £300,000 and £1,500,000
28% over £1,500,000

For more info check out www.hmrc.gov.uk

Jonathan

how dos uk business\ corperation tax work?

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