Corporation Tax

Corporation tax rates and bands are as follows:

Financial Year to	31 March 2009	31 March 2008
Taxable profits
First £300,000	21%	20%
Next £1,200,000	29.75%	32.5%
On profits over £1,500,000	28%	30%
Tax credit on dividends	10%	10%
Marginal relief fraction	7/400	1/40

Corporation Tax Payable

For small and medium sized companies

• Nine months and 1 day after the end of the accounting period

For large companies

• Instalments
  • The 14th day of the seventh, tenth, 13th and 16th months after the commencement of a 12 month accounting period
• Balance
  • Nine months and one day after the end of the accounting period

April 2009 and Beyond

The small companies' rate will be 22% from 1 April 2009.

Did you know?

That the Government expect to raise £51.3 billion in corporation tax receipts. This represents an increase of more than 10% compared to the estimated net yield of £46.4 billion in the last tax year.