Category: Corporation tax

Tax Rate Overview Corporation Tax in the United Kingdom for 2025 follows a structured approach designed to accommodate businesses of different sizes and profit levels. The tax system is straightforward yet nuanced, ensuring fair taxation across various business scales. Corporation Tax Rate Breakdown Profit Level Tax Rate Profits under £50,000 19% (Small Profits Rate) Profits… Continue reading UK Corporate Tax Rates 2025: What Businesses Need to Know

Can directors claim for fuel and motor expenses? We cannot include car repair, fuel and running costs in a limited company’s accounts unless they are for a company car. Directors can claim for 45p per mile for the first 10,000 business miles per year and 25p thereafter. We would normally make an adjustment for this… Continue reading Mileage allowance

Fees related to a trade are often allowable but it depends on the nature of the fees. Generally, fees related to the purchase or sale of property/assets and to do with raising equity finance are disallowed for tax purposes. “Capital” expenditure: not deductible Legal and professional fees are “capital” if they relate to an asset’s:… Continue reading Are legal and professional fees tax deductible?

Trading losses If your company makes a loss from its trading operations then it can claim relief against corporation tax. Current year If you make a trading loss, you can offset the loss against profits/gains from other trades or sources in your company in the current year. Carry back against previous year If you can’t… Continue reading Loss relief

Bad debts can receive tax deductions if they are: bad debts that definitely cannot be recovered (eg debtor has already closed down) specific bad debts that are doubtful/unlikely to be received debts released by the creditor as part of a statutory insolvency arrangement Bad debts won’t receive tax deductions if they’re general provisions against overall… Continue reading Can tax deductions be claimed for bad debts?

Business entertainment means the provision of free or subsidised hospitality or entertainment. The person being entertained may be a customer, a potential customer or any other person. We’ve broken it down into 3 categories: 1) Clients and potential customers Client entertainment usually isn’t allowable for tax purposes. Examples may include: taking clients out for meals/drinks… Continue reading Is entertaining tax deductible?