Corporation Tax
Financial years starting April 2025
| Profits | Rate | Notes |
|---|---|---|
| Up to £50,000 | 19% | Small profits rate |
| £50,001 – £250,000 | 19%–25% | Marginal relief applies |
| Over £250,000 | 25% | Main rate |
Marginal Relief
Gradually increases the effective rate from 19% to 25% for profits between £50,000 and £250,000.
Associated Companies
Thresholds are divided by the number of associated companies, potentially pushing more into the 25% rate.
Employer National Insurance
Class 1 Employer contributions 2025/26
| Earnings Per Employee | Rate |
|---|---|
| Up to £5,000 (Secondary Threshold) | 0% |
| Over £5,000 | 15% |
Employment Allowance 2025/26
Eligible employers can reduce their NIC bill by up to £10,500 per year.
Class 1A NIC (Benefits)
15% on expenses and benefits provided to employees (e.g. company cars, private medical).
National Minimum Wage
Rates from 1 April 2025
| Category | Hourly Rate |
|---|---|
| National Living Wage (21+) | £12.21 |
| 18–20 year olds | £10.00 |
| 16–17 year olds | £7.55 |
| Apprentices | £7.55 |
Statutory Pay Rates
From 6 April 2025
| Type | Weekly Rate |
|---|---|
| Statutory Maternity Pay (first 6 weeks) | 90% of average weekly earnings |
| Statutory Maternity Pay (remaining weeks) | £187.18 or 90% AWE if lower |
| Statutory Paternity Pay | £187.18 or 90% AWE if lower |
| Statutory Adoption Pay | £187.18 or 90% AWE if lower |
| Statutory Shared Parental Pay | £187.18 or 90% AWE if lower |
| Statutory Sick Pay (SSP) | £118.75 per week |
Mileage Allowance Payments
HMRC approved rates — employees using own vehicles
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars & vans | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
VAT
2025/26
| Rate | Applies To |
|---|---|
| Standard – 20% | Most goods and services |
| Reduced – 5% | Energy, children's car seats, some home improvements |
| Zero – 0% | Food, children's clothing, books, public transport |
| Registration Threshold | £90,000 turnover in 12 months |
| Deregistration Threshold | £88,000 turnover in 12 months |
Key Company Tax Deadlines
9 months after year endCorporation tax payment due (small companies)
12 months after year endCorporation tax return (CT600) filing deadline
7th of each monthVAT return filing and payment deadline
19th of each monthPAYE & NIC payment deadline (22nd if paying electronically)
6 July each yearP11D submission deadline (expenses & benefits)
19 July each yearClass 1A NIC payment on P11D benefits
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