Corporation Tax is is a tax on annual profits for all UK limited companies, with a standard rate for all businesses set at 19% (since April 2016).

As soon as a company starts making money, it needs to pay Corporation Tax on its profits it makes, its investments and when it sells assets for more than they cost.

It works a bit like Income Tax for companies, but as businesses don’t receive any kind of tax-free allowance, all profits are taxable. The good news is that there are a number of expenses that be claimed to reduce your bill.