Corporation Tax: an overview
A limited company pays Corporation Tax on its profits, and the responsibility for getting it right sits with the company's directors. The system is self-assessed, so accurate records and timely filing are essential.
- You file a CT600 return with accounts and tax computations each year
- The tax is usually payable before the filing deadline — the dates are not the same
- Most genuine business costs are deductible; some, such as client entertaining, are not
- Losses can often be carried back or forward to reduce tax in other periods
How MMC helps: we prepare your accounts and return, make sure every allowable cost is claimed, and plan ahead so the tax bill never comes as a surprise.
Capital allowances
When your business buys equipment, vehicles or other capital assets, you usually can't simply deduct the cost as an expense — instead you claim capital allowances, which give tax relief in a structured way.
- The Annual Investment Allowance gives immediate relief on qualifying plant and machinery up to a generous limit
- Further first-year reliefs may apply to certain new assets
- Relief on cars depends on their CO₂ emissions
- The Structures and Buildings Allowance covers qualifying construction costs
How MMC helps: we make sure purchases are claimed correctly and advise on timing — sometimes moving spending a few weeks changes which year the relief lands in.
These factsheets are general guidance, not advice, and rates and thresholds change. For current figures see our tax rates & allowances page, and please contact us for advice tailored to your circumstances.
