top of page
  • Barry Adams

Corporation Tax Changes

Updated: Mar 16, 2023

From 1st April 2023, Corporation Tax Rates are going to be changing.

Currently, the rate is 19% on all profits.

Following the changes, the rates will be as follows:

  • Profits up to £50,000 will be taxed at 19%

  • Profits over £250,000 will be taxed at 25%

  • Profits between £50K and £250K will be taxed at 19% up to £50K and then at 26.5% between £50K and £250K

So if you generate less than £50K profit, the 19% will still apply, and if you generate more than £250K, the new rate of 25% will be applied over the full amount.

Here is a quick overview of the tax liability for various amounts of profit between £50K and £250K, as well as the difference between what you will pay and what you would have paid under the current tax rate:


Tax liability 2023

Previous tax (19%)





+ £750




+ £1,500




+ £2,250




+ £3,000




+ £3,750




+ £5,625




+ £8,500




+ £9,375




+ £11,250

Note that where your accounting period covers this date, profits up to the 31st of March will be calculated at 19% and from the 1st of April at the new rates.

Profits are considered to arise evenly over the whole accounting period.

This brings into sharper focus keeping profits below £50,000.

There are a couple of tax-efficient ways in which profits can be reduced, such as:

  • Pension contributions up to £60,000 per individual

  • Purchasing an electric car

Please don't hesitate to contact us if you have the same shareholdings in multiple companies.

59 views0 comments

Recent Posts

See All


bottom of page