The rates for “ring fence” profits are quite different for companies involved in oil extraction and sale in the UK and UK continental shelf.
In some cases reliefs can be claimed on corporate taxes.
There has been a slight change on the tax rates for profits in the last three years:
|Your profits||From 1 April 2015||From 1 April 2014||From 1 April 2013|
|£300,000 or less||20%||20%||20%|
Marginal relief can be claimed in case if you had profits between £300,000-£1.5 million before 1st of April 2015 in order to reduce corporation tax.
If the accounting period is shorter than 12 months the threshold is reduced to match the accounting period. For example, if you have made £300,000 in profits over an accounting period of 6 months the threshold is halved. In case of associated companies the tax threshold is shared.
While preparing company accounts the cost of running the business can be deducted from the profits. Whatever is used personally by the employer or the employee must be treated as benefit. Several expenses cannot be authorized under the corporate tax, such as client entertainment, these need to be added back into the profits when preparing company tax return forms.
Capital allowance can be claimed if assets used in business are bought. This includes:
Other reliefs include:
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