United Kingdom corporate taxes
The United Kingdom (outside the EU since 2020) taxes company profit at 25%, with a 19% small-profits rate and marginal relief in between. VAT is 20% with a high £90,000 registration threshold. Employers pay 15% National Insurance, and payroll, VAT and accounts are all filed digitally — through HMRC for tax and Companies House for the public register.
Company forms & registration
A company is incorporated at Companies House; people with significant control (the UK’s beneficial-owner concept) are recorded on the public register.
| Main legal forms | Ltd (private limited by shares), LLP, PLC (public)[3][7]The private limited company (Ltd) is the default choice for most businesses. |
|---|---|
| Minimum share capital | Ltd: none (often £1); PLC: £50,000[3][7] |
| Registers a new employer meets | Companies House (incorporation, PSC) → HMRC (corporation tax, PAYE, VAT)[7][4] |
Other statutory requirements
Obligations beyond filing a tax return that every operating company must satisfy.
| Confirmation statement | Filed with Companies House at least once a year[7]Confirms the company’s registered details, shareholders and people with significant control. |
|---|---|
| People with significant control (PSC) | Anyone holding more than 25% of shares or votes[7]Identities must now be verified under the Economic Crime and Corporate Transparency Act. |
| Making Tax Digital | VAT records kept and filed digitally[5] |
| Document retention | 6 years[4] |
Corporation tax
Withholding taxes & dividends
| Dividends paid abroad | No withholding tax[4]The UK does not withhold tax on dividends, regardless of the recipient. |
|---|---|
| Interest & royalties (non-residents) | 20% (treaty relief common)[4] |
| Dividend tax on individuals (2026/27) | 10.75% / 35.75% / 39.35%[6]Ordinary and upper rates rose by 2 points from April 2026. A £500 dividend allowance applies first. |
VAT
| Standard rate | 20%[2][5] |
|---|---|
| Reduced & zero rates | 5% and 0%[2][5]5%: domestic fuel, children’s car seats. 0%: most food, books, children’s clothing, public transport. |
| Registration threshold | £90,000[5]One of the highest VAT thresholds anywhere in Europe. |
| VAT return | Quarterly, one month and 7 days after period end[5]Filed under Making Tax Digital. |
Payroll: income tax & National Insurance
Income tax is progressive; employers operate PAYE and report to HMRC in real time. Scotland sets its own income-tax bands.
| Income tax (England, Wales & NI) | 20% / 40% / 45%[6]Personal allowance £12,570; 40% above £50,270; 45% above £125,140. Thresholds are frozen. |
|---|---|
| Employer National Insurance | 15% above £5,000/year[6]Raised to 15% with a lower secondary threshold from April 2025. An Employment Allowance offsets part of the bill for smaller employers. |
| Employee National Insurance | 8% then 2%[6]8% between £12,570 and £50,270, 2% above. |
| National Living Wage | £12.21/hour (from April 2025)[6]For workers aged 21 and over; reviewed each April. |
| Reporting | PAYE Real Time Information on or before each payday[6] |
Other taxes companies meet
Accounting & financial statements
| Accounting standards | UK GAAP (FRS 102) or IFRS[7] |
|---|---|
| Annual accounts | To Companies House within 9 months (private company)[7][4]And to HMRC with the company tax return. |
| Audit exemption | 2 of 3: turnover £15m, balance sheet £7.5m, 50 employees[7]Thresholds were raised from April 2025; smaller companies are exempt from audit. |
Forms & filings
Every recurring return and report a typical company deals with, what triggers it, and where it goes. Registration-time and one-off filings are marked “per event”.
| Form | What it is | Who files | Frequency | Deadline | Filed with |
|---|---|---|---|---|---|
CT600 | Company tax return[4] | Companies | annual | 12 months after period end (pay at 9m + 1 day) | HMRCHMRC online |
VAT Return | VAT return (Making Tax Digital)[5] | VAT-registered businesses | quarterly | 1 month + 7 days after quarter end | HMRCMTD software |
FPS | PAYE Full Payment Submission[6] | All employers | per event | On or before each payday | HMRCPayroll software |
Accounts | Annual accounts[7] | Companies | annual | 9 months after year end (private) | Companies HouseCompanies House |
CS01 | Confirmation statement[7] | All companies | annual | At least once every 12 months | Companies HouseCompanies House |
Compliance calendar
The same filings grouped by rhythm — what recurs when.
VAT Return1 month + 7 days after quarter end
CT60012 months after period end (pay at 9m + 1 day)Accounts9 months after year end (private)CS01At least once every 12 months
FPSOn or before each payday
Sources
Numbered references cited throughout this profile. Laws link to consolidated texts in the official register.