How to Keep Corporation Tax Simple in 2025/26
- JSC Accounting Team
- Oct 6
- 2 min read
Running a small business already comes with plenty to juggle. Corporation tax doesn’t need to be one of the stressful parts.
With a few clear steps, you can keep on top of what you owe, when it’s due, and how to plan for it.
What it is
Corporation tax is the main tax paid by limited companies on their profits. For the financial year starting April 2025, most small companies will continue paying 19% if their profits are £50,000 or less. If profits rise above that, the rate increases gradually up to 25%.
It applies to everything your company earns, including trading profits, interest, and gains from selling assets like property or shares.
When to pay
The deadline is normally nine months and one day after the end of your company’s accounting period. So if your year ends on 31 March 2025, payment is due by 1 January 2026. The tax return itself must be filed within twelve months of the year end.
Paying early can help avoid last-minute stress, and HMRC will even pay a small amount of interest on early payments.
Planning ahead
Set aside a percentage of your profits throughout the year rather than waiting until the deadline. Many business owners keep a separate “tax pot” account.
Regular bookkeeping in Xero or similar software also helps as you can see profits and tax estimates in real time instead of being surprised later.
Common pitfalls
Late payments attract interest and penalties, while incorrect returns can lead to HMRC enquiries.
The most common cause of errors is mixing personal and company spending or missing deductible expenses such as mileage, professional subscriptions, or home-office costs.
Simple takeaway
Know your dates, keep accurate records, and review your tax position quarterly. A small amount of organisation can save a lot of money and stress when year-end arrives.
Need help making sense of your taxes? JSC Accounting works with small businesses across the UK to keep things simple and compliant. Get in touch for a friendly chat about how we can help.
