The corporation tax rates and business allowances in the United Kingdom are updated annually with new tax tables published by HMRC. The Tax tables below include the tax rates, thresholds and allowances included in the United Kingdom Salary Calculator 2012 which is designed for salary calculation and comparison.
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Corporation Tax is a direct tax that is applied against companies that operate in the UK, this includes corporations, limited companies, limited company contractors etc. If a company is based in the UK it pays corporation tax on all its profits from within the UK and abroad. If a company is based outside the UK but has a branch or office in the UK it must pay corporation tax on all profits from UK business activities.
Please note that in the tax years proceeding 2015, the UK corporation tax calculation included a small profit rate limit and separate small profit corporation tax rate. The figure shown above for the Corporation tax rate is the Standard Rate of tax applied to corporations profits, this figure is used for generic comparison and computation of corporation tax within those terms.
Corporation Tax in 2012 is calculated based on the portion of the annual profits that fall within the 2012 tax year. 2012 Corporation tax is applied against those profits taking into consideration the Starting profit limit, small rate profit limit and, starting rate, small profit rate and the standard rate of corporation tax in 2012.
It is important to note that the corporation tax rate applies across the tax ear as defined by HMRC (April 1st 2012 to March 31st 2013, 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
Taxes, including corporation tax, expenses and limitations are reviewed by the Government in the United Kingdom periodically and typically updated each year. Note that not all tax rates and thresholds in the United Kingdom change annually, alterations to tax policy to support strategic economic growth in the United Kingdom mean that the certain areas may be focused on to provide specific tax relief in the United Kingdom or support growth in certain areas (overseas investment in the United Kingdom for example may mean reduced non-resident income tax rates in the United Kingdom 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 United Kingdom changes, the resultant tax tables also change, HMRC then publishes new Tax tables and information on changes to UK tax law and computations. Tax tables in the United Kingdom are simply a list of the relevent tax rates, fixed amounts and / or thresholds used in the computation of tax in the United Kingdom, the United Kingdom 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 United Kingdom for example).
The United Kingdom Corporation Tax Tables may also be referred to as the United Kingdom Tax Slabs, United Kingdom business allowances and tax thresholds or United Kingdom 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 2012 tax rates and thresholds used within the 2012 United Kingdom Corporation Tax Calculator. This means that if you are aware of a 2012 business tax exemptions or 2012 business tax allowance in the United Kingdom that your business is entitled too BUT it isn't listed here, that we don't allow for it in this version of the United Kingdom Corporation Tax Calculator. Our aim is to keep corporate tax calculations in the United Kingdom simple, we achieve this my making the United Kingdom business tax calculators relevent to UK 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 United Kingdom corporation tax rates and business allowances used in the associated business tax calculators for the same tax year.