Corporation Tax and the rate you pay has changed. The tax rate has risen from 19% of taxable profit to 25%, effective from 1 April 2023.
However, if you are a small business with profits of up to £50,000 then do not start worrying, there will be no change, you will continue to pay tax at a rate of 19%. The changes to how much corporation tax you’ll pay as a limited company depends on your level of profit. For limited companies with profits of £250,000 and over, the new rate will be 25%. If your profits are between £50,000 and £250,000, the rate of tax you pay on the profits in that gap will continue to increase from 19% to 25%.
