What is corporation tax?

In a nutshell

Corporation tax is the money you pay to the UK government for any profits you make as a business. At the time of writing (December 2022), this is 19% of your company’s profits (profits = income – expenses).

You can reduce the amount of corporation tax you pay by making sure you record all your expenses (e.g., equipment purchases, business trips, software licenses, etc).

Sources

• What is corporation tax and who has to pay it? – BBC
• Corporation Tax – gov.uk