Corporation Tax is a tax on the profits of limited companies. The main corporate tax rate increased to 25% from April 1, 2023, compared to the previous rate of 19%. This main rate applies to companies making over £250,000 in profits. For companies making less than £50,000 in profits, the tax rate is 19%. If a company's profits fall between £50,000 and £250,000, the tax rate varies on a sliding scale.
Using a tax professional such as Redwood Accountants (Rugby) is vital to ensure compliance. However, I can also provide expert advice on ways to lessen the amount you'll have to pay. There are plenty of legal ways to reduce the Corporation Tax bill you pay to HMRC.
Capital allowances can help you reduce your tax bill by letting you claim relief on expenditures on new equipment, machinery, or even renovations for your business. In simple terms, capital allowances are a form of tax deduction that allows you to deduct a portion of the cost of certain capital assets from your taxable profits over time. This lowers your taxable income, meaning you pay less tax.
Businesses can significantly lower their corporation tax bill by contributing to employee pensions, including contributions for directors. These contributions are treated as allowable expenses, reducing the company's taxable profit. This means the business pays less tax upfront, while employees and directors benefit from tax-efficient retirement savings.
Reviews
John
Would highly recommend Redwood. Joe was always quick to reply and gave great advice and helped me with my Tax return questions. I will definitely use Joe and Redwood Accounting again in the future.
Josh
I contacted Redwood to help me register for self-assessment and submit my first ever tax return. Joe was really easy to talk to and professional and helped me understand the process and utilise all of my available tax allowances. I would definitely recommend Redwood Accounting to all of my friends and family.
Ian Dunn
Excellent service , not only very competitive cost wise, but also very professional and knowledgeable, Redwood is now my go to for my company accounts service. Thank you
Ravi Navath
I am certainly going to recommend Redwood Accounting. Initially, I reached out to Joe Judge solely for filing our company accounts with Companies House, and he understood our situation and provided a highly reasonable quote. Even though we hadn't conducted any business since establishing the limited company with Companies House, Joe recommended and completed additional necessary filings, such as full tax filing with HMRC, without any additional fees. He promptly addresses all our inquiries. I'm certain that I'll be utilizing his services again in the future
Robyn Churchill
Joe is by far the best accountant we have ever had. Always there to guide us and offer advice, would 💯 recommend!
Susil Bains
The service provided by Redwood Accounting, Tax & Payroll is exceptional. Their expertise, attention to detail, and ability to simplify complex financial matters have been invaluable. They're always up-to-date with tax regulations, and their dedication to my financial goals is impressive. I highly recommend Joe to anyone in need of a knowledgeable, responsive, and client-focused accountant. Thanks to them, managing my finances has become a breeze.
Manny Singh
I recently had the pleasure of working with Redwood, and I must say, their services exceeded my expectations. The team demonstrated a profound understanding of financial intricacies, providing insightful advice tailored to my business needs. Their commitment to accuracy and attention to detail instilled confidence in the reliability of their work. The seamless communication and prompt responses further added to the positive experience. I highly recommend them for anyone seeking professional and trustworthy accounting services.
Mandeep Kaur
I recently engaged with Redwood Accounting and I'm thoroughly impressed. Their team is not only friendly but also exceptionally organised, ensuring a smooth and stress-free experience. They consistently deliver timely and accurate results, going the extra mile to address any concerns. Highly recommend for a reliable and client-focused accounting service.
Raman Sagoo
We have been using Joe for our self assessment returns and general financial advice for over a year. We find him highly knowledgeable and he offers effective solutions and guidance to all tax related queries. He is responsive and works around our schedule during evenings and weekends. We recommend Joe and the Redwood team for all tax and accounting related work.
