What you should know:
Income Tax (Also known as pay as you earn)
This is tax deducted from salary paid by an employer.
Tax is due monthly on 22nd of the following month. If you pay staff on the 30th April, the tax is due to the revenue by the 22nd of May
Tax is due quarterly on the 19th of January, April, July and October of each year if the Contributions are less than £1500 per month.
Income Tax rates and bands
The table shows the tax rates you pay in each band if you have a standard Personal Allowance of £12,570.
Income tax bands are different if you live in Scotland.
| Band | Taxable income | Tax rate |
|---|---|---|
| Personal Allowance | Up to £12,570 | 0% |
| Basic rate | £12,571 to £50,270 | 20% |
| Higher rate | £50,271 to £125,140 | 40% |
| Additional rate | over £125,140 | 45% |
You can also see the rates and bands without the Personal Allowance. You do not get a Personal Allowance on taxable income over £125,140.
Corporation Tax rates
The rate of Corporation Tax you pay depends on how much profit your company makes.
Rates for Corporation Tax years starting 1 April
There are different rates for ring fence companies.
| Rate | 2026 | 2025 | 2024 | 2023 | 2022 |
|---|---|---|---|---|---|
| Small profits rate (companies with profits under £50,000) | 19% | 19 % | 19% | 19% | — |
| Main rate (companies with profits over £250,000) | 25% | 25% | 25% | 25% | — |
| Main rate (all profits except ring fence profits) | — | — | — | — | 19% |
| Marginal Relief lower limit | £50,000 | £50,000 | £50,000 | £50,000 | — |
| Marginal Relief upper limit | £250,000 | £250,000 | £250,000 | £250,000 | — |
| Standard fraction | 3/200 | 3/200 | 3/200 | 3/200 | — |
| Special rate for unit trusts and open-ended, investment companies | 20% | 20% | 20% | 20% | 20% |
From 1 April 2023, there is no longer a single Corporation Tax rate for non-ring fence profits.
At the Spring Budget 2021, the Corporation Tax main rate for non-ring fence profits was increased to 25% for profits above £250,000.
A small profits rate of 19% was also announced for companies with profits of £50,000 or less.
We are located at:
Steer Acccountancy
Basepoint
Shearway Business Centre
Shearway Road
Folkestone
Kent
CT19 4RH
Contact us today!
Email : If you have any queries or wish to make an appointment, please contact us:
Tel: 01303 316036
enquiries@steeracc.co.uk
Or use our contact us page
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