STYLES & ASSOCIATES
ACCOUNTANCY SERVICES
Serving businesses in Alton, and throughout Hampshire
Corporation Tax Services for Hampshire Companies
Styles & Associates is an Alton-based accountancy firm that prepares and files Corporation Tax returns (CT600) for limited companies across Hampshire, Surrey and West Sussex. We calculate what you owe, claim every relief and allowance you're entitled to, and file on time, so you never see a penalty letter from HMRC.
What is Corporation Tax?
Corporation Tax is the tax a limited company pays on its annual profits, including trading profits and chargeable gains from selling assets such as property or investments. There's no tax-free personal allowance for companies: every pound of taxable profit is in scope. HMRC doesn't send you a bill - you must calculate it yourself (or have an accountant do it) and file a return.
Who has to pay Corporation Tax?
You must pay Corporation Tax on profits from:
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a limited company
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any foreign company with a UK branch or office
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a club, co-operative or unincorporated association, such as a community group or sports club
The company director remains legally responsible for filing on time, even if an accountant handles the work.
What are the current Corporation Tax rates?
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Since 1 April 2023, the UK has used a two-tier system:
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19% small profits rate - companies with profits of £50,000 or less
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25% main rate - companies with profits over £250,000
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Marginal relief - profits between £50,000 and £250,000 pay an effective rate that tapers smoothly from 19% to 25%, using the standard 3/200 fraction. Each extra pound of profit in this band is taxed at a marginal rate of 26.5%.
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If your company has associated companies (under common control), both the £50,000 and £250,000 thresholds are divided by the number of associated companies, which can push you into a higher effective rate sooner. Talk to us if your group structure has changed.
How do you register for Corporation Tax?
Register with HMRC within 3 months of starting to trade - this includes buying, selling, advertising, employing someone, or renting premises. A dormant (non-trading) company doesn't need to register yet. HMRC issues your Unique Taxpayer Reference (UTR) after Companies House incorporation; use it to set up your HMRC online account and file your Company Tax Return (CT600).
When do you pay Corporation Tax, and when do you file?
These are two separate deadlines, and payment comes first:
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Payment: 9 months and 1 day after your accounting period ends. (E.g. a year ending 31 March is due by 1 January.)
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Filing: 12 months after your accounting period ends, or 3 months after HMRC sends a notice to deliver a return, whichever is later.
You must know your tax figure to pay on time, so most companies prepare the return well before the filing deadline. First-year companies sometimes have two accounting periods if their first year runs longer than 12 months - ask us if you're not sure.
Companies with profits over £1.5 million must pay Corporation Tax in quarterly instalments (this threshold is also divided between associated companies). Loss-making companies must still file a return declaring a nil liability.
How do you pay Corporation Tax?
What happens if you file or pay late?
Late filing (fixed penalties): for returns with a filing deadline on or after 1 April 2026, HMRC doubled its fixed penalties.
File late in 3 consecutive periods and the fixed penalties rise to £1,000 each. Penalties apply even if you owe no tax. (Returns with an earlier filing deadline still use the previous £100/£100/10%/10% scale.)
Late payment (interest, not a fixed fine): HMRC charges daily interest at the Bank of England base rate plus 4% - currently 7.75% a year - from the day after your payment deadline until you pay in full. This rate changes with the base rate, so check it before budgeting. There's no fixed late-payment penalty for Corporation Tax; interest is the charge.
Pay early and HMRC pays you a lower rate of repayment interest (base rate minus 1%, currently 2.75%) from the start of your accounting period on tax you've overpaid.
Source: HMRC / GOV.UK, Finance Act 2026.
How to reduce your Corporation Tax bill
Allowable expenses. Legitimate costs used exclusively for the business reduce your taxable profit: travel, phone bills, equipment, stationery, mileage and professional insurance among them. Keep receipts for everything.
Director's salary. Salary and employer National Insurance are deductible business expenses, so paying yourself a salary reduces Corporation Tax. We'll help you set the right balance of salary and dividends for your situation.
Pension contributions. Employer pension contributions are deducted from profits before tax, making pensions one of the most tax-efficient ways to extract value from your company.
Annual Investment Allowance (AIA). 100% first-year relief on up to £1,000,000 of qualifying plant, machinery, equipment and certain fixtures, shared across any group of associated companies.
Full expensing. For spending above the AIA limit on new (not second-hand) main-rate plant and machinery, companies can claim 100% relief with no monetary cap.
R&D tax relief. Available for work that advances knowledge or capability in science or technology, or resolves technological uncertainty.
The Patent Box. A reduced Corporation Tax rate on profits from patented inventions.
Creative industry reliefs. For qualifying theatre, film, television, animation and video games profits.
Trading losses. Losses from trading, asset disposals or property income can often be relieved against other profits, carried back or carried forward.
How Styles & Associates handles your Corporation Tax
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Free consultation: we review your accounting period, profits and any reliefs you might be missing.
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Registration: we register you with HMRC as your agent if you're newly trading.
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Preparation: we prepare your accounts and CT600 calculation, checking every allowable expense and relief.
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Your approval: we send you the tax figure and payment deadline before filing.
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Filing: we submit your return to HMRC and confirm receipt.
Who we help
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Start-ups and newly incorporated companies registering for the first time
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Established limited companies of all sizes, from sole-director businesses to larger corporations
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Companies with complex reliefs - R&D, Patent Box, creative industry relief
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Companies behind on filing - we help bring late returns up to date and can support penalty appeals
Frequently Asked Questions
What is the current Corporation Tax rate?
19% on profits up to £50,000, 25% on profits over £250,000, with marginal relief tapering the rate in between.
When is Corporation Tax due?
9 months and 1 day after your accounting period ends. Your CT600 return is due later, 12 months after the period ends.
What happens if I file my Corporation Tax return late?
HMRC charges a fixed penalty of £200 from 1 day late (for filing deadlines from 1 April 2026), another £200 at 3 months, then 10% of unpaid tax at 6 and 12 months. These apply even with no tax to pay.
What happens if I pay late?
HMRC charges daily interest, currently 7.75% a year, from the day after your payment deadline until you pay. There's no separate fixed penalty for late payment.
Do I need to file if my company made a loss?
Yes. You must still submit a return declaring a nil liability, even with no tax due.
How much can I claim through the Annual Investment Allowance?
Up to £1,000,000 a year on qualifying plant and machinery, shared across any associated companies.
Do you work with companies outside Alton?
Yes. We work with companies across Hampshire, Surrey and West Sussex, including Farnham, Guildford, Basingstoke, Winchester, Petersfield and Portsmouth, and remotely with clients anywhere in the UK.
This page is general guidance, not personal tax advice. Figures are correct at the date shown above.
