UK company tax guide | Corporation Tax, VAT & HMRC compliance

Corporation Tax

All UK Ltd companies pay Corporation Tax on their profits. The current rate is 19% on profits up to £250,000. You must register with HMRC within 3 months of starting business.

• Register for UTR number with HMRC after formation
• File Company Tax Return (CT600) annually
• Pay tax within 9 months and 1 day of accounting period end
• File Companies House accounts at the same time

VAT — Value Added Tax

If your sales exceed £85,000 per year you must register for VAT. You can register voluntarily before this threshold to reclaim VAT on expenses.

• Mandatory registration above £85,000
• Voluntary registration for reclaim
• Quarterly or annual VAT returns
• Rates: 20% standard / 5% reduced / 0% exempt

PAYE — Pay As You Earn

If you employ staff in the UK you must register as an employer and operate PAYE to handle tax and National Insurance deductions.

• Register as employer with HMRC
• Deduct Tax and National Insurance from salaries
• Submit RTI (Real Time Information) reports per pay run
• Employer and employee NICs

Annual Companies House compliance

You must file a Confirmation Statement (CS01) at least once a year and any required accounts, even if the company is dormant.

• Confirmation Statement (CS01) at least annually
• Company Accounts (frequency depends on company size)
• Dormant Accounts for inactive companies
• Penalties for late filing — from £150 and escalating

How Eteform helps

• VAT registration with HMRC — £75
• PAYE setup — £50
• Corporation Tax registration — £75
• Annual CS01 confirmation statement — £40/year
• Dormant company accounts — £60/year