The corporation tax rates and business allowances in the Scotland are updated annually with new tax tables published by HMRC. The Tax tables below include the tax rates, thresholds and allowances included in the Scotland Salary Calculator 2022 which is designed for salary calculation and comparison.
|Tax Rate||Profit Threshold|
|19%||Profits from £0.00||and above|
Corporation Tax is a direct tax that is applied against companies that operate in Scotland, this includes corporations, limited companies, limited company contractors etc. If a company is based in Scotland it pays corporation tax on all its profits from within Scotland and abroad. If a company is based outside Scotland but has a branch or office in Scotland it must pay corporation tax on all profits from Scottish business activities.
Corporation Tax in 2022 is calculated based on the profits that fall within the 2022 tax year. 2022 Corporation tax is applied against those profits using the standard rate of corporation tax in 2022.
It is important to note that the corporation tax rate applies across the tax ear as defined by HMRC (April 1st 2022 to March 31st 2023, not a companies financial year which is most often different to the UK Tax Year. When a companies financial year bridges two tax years, the profits must be broken down into two separate tax periods and the appropriate corporation tax rate and thresholds applied on a pro-rata basis
The easiest way to calculate the amount of corporation tax due in 2022 is to use the free online 2022 Corporation Tax Calculator
Taxes, including corporation tax, expenses and limitations are reviewed by the Government in the Scotland periodically and typically updated each year. Note that not all tax rates and thresholds in the Scotland change annually, alterations to tax policy to support strategic economic growth in the Scotland mean that the certain areas may be focused on to provide specific tax relief in the Scotland or support growth in certain areas (overseas investment in the Scotland for example may mean reduced non-resident income tax rates in the Scotland for a period). Corporation tax is administered by Her Majesties Revenue and customs (HMRC) who promulgate updates to corporation tax and other taxes as policies are altered and tax laws change.
When tax policy in the Scotland changes, the resultant tax tables also change, HMRC then publishes new Tax tables and information on changes to UK tax law and computations, the Scottish Government also defines seperate tax laws where applicable. Tax tables in the Scotland are simply a list of the relevent tax rates, fixed amounts and / or thresholds used in the computation of tax in the Scotland, the Scotland tax tables also include specific notes and guidance on the validity of scenarios (for example, qualifying criteria for specific tax relief / allowances) and notes of the calculation of phaseout of specific tax elements within each taxation group (dividends and corporation tax thresholds in the Scotland for example).
The Scotland Corporation Tax Tables may also be referred to as the Scotland Tax Slabs, Scotland business allowances and tax thresholds or Scotland business tax rates. They all refer to the tax tables in general, whether in whole or as specific sections/categories of the tax tables therein. In this section, we publish all 2022 tax rates and thresholds used within the 2022 Scotland Corporation Tax Calculator. This means that if you are aware of a 2022 business tax exemptions or 2022 business tax allowance in the Scotland that your business is entitled too BUT it isn't listed here, that we don't allow for it in this version of the Scotland Corporation Tax Calculator. Our aim is to keep corporate tax calculations in the Scotland simple, we achieve this my making the Scotland business tax calculators relevent to Scottish Businesses. In addition to our simple corporation tax calculators and tax comparison calculators, we also provide detailed tax calculators which use the full tax tables and allowances so you have the choice of tools to suit your tax calculation needs, whether an employee, an employer, contractor or expat, we have a payroll and tax calculator to suit your needs.
Choose a specific tax year to see the Scotland corporation tax rates and business allowances used in the associated business tax calculators for the same tax year.