{"id":39369,"date":"2025-04-11T12:23:01","date_gmt":"2025-04-11T11:23:01","guid":{"rendered":"https:\/\/taxfix.com\/en-uk\/?p=39369"},"modified":"2026-01-26T13:41:02","modified_gmt":"2026-01-26T13:41:02","slug":"what-limited-company-tax-do-you-need-to-pay","status":"publish","type":"post","link":"https:\/\/taxfix.com\/en-uk\/limited-companies\/what-limited-company-tax-do-you-need-to-pay\/","title":{"rendered":"What limited company tax do you need to pay?"},"content":{"rendered":"\n

Let\u2019s be real, limited company tax<\/strong> is the last thing you want to deal with when you\u2019re trying to run your business. But hey, avoiding it isn\u2019t an option. \ud83e\udee3<\/p>\n\n\n\n

Understanding what taxes your company needs to pay is essential to keeping your business on track. From Corporation Tax to VAT, each tax has its own rules and deadlines. Here\u2019s a rundown of the key taxes LTD companies need to be aware of.<\/p>\n\n\n\n

Corporation Tax <\/h2>\n\n\n\n

Ah, the big one: Corporation Tax<\/a>. This is a key part of your limited company tax <\/strong>responsibilities and it\u2019s non-negotiable! <\/p>\n\n\n\n

It\u2019s the tax your LTD company pays on its profits, including trading income, capital gains and investments. If your company makes money, HMRC wants a slice. \ud83c\udf70<\/p>\n\n\n\n

How much corporation tax do companies pay? <\/h3>\n\n\n\n

Corporation Tax isn\u2019t one-size-fits-all, it depends on how much profit your company makes:  <\/p>\n\n\n<\/div> \n\n

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Corporation tax<\/strong> rates<\/strong> in the 2025\/26 tax year.<\/span><\/p>\n\n\n\n\n\n\n
Business income (profit)<\/b><\/td>\nTax rate<\/b><\/td>\n<\/tr>\n
Up to \u00a350,000<\/span><\/td>\n19%<\/span><\/td>\n<\/tr>\n
\u00a350,000 – \u00a3250,000<\/span><\/td>\n19-25%<\/span><\/td>\n<\/tr>\n
\u00a3250,000+<\/span><\/td>\n25%<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n
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When and how to pay company tax <\/h3>\n\n\n\n

As part of your limited company tax <\/strong>obligations, Corporation Tax is due 9 months and 1 day<\/a> after the end of your accounting period. <\/p>\n\n\n\n

You’ll need to pay company tax<\/strong> online via the HMRC portal. It\u2019s a good idea to set up your payment well in advance so you don\u2019t face any late fees. \ud83c\udfc3<\/p>\n\n\n<\/div> \n\n

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Need help with your corporate tax return?<\/h2>\n\n \n \n
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Let us take the stress out of it. Get your tax return done right, on time and with expert guidance.<\/p>\n<\/div>\n <\/div>\n\n \n \n

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VAT (Value Added Tax) <\/h2>\n\n\n\n

If your company sells goods or services, VAT\u2019s got a seat at your table. It\u2019s charged on the value added at each stage of the production and sale of goods and services.<\/p>\n\n\n\n

When should you register for VAT? <\/h3>\n\n\n\n

You must register for VAT if your turnover exceeds \u00a385,000<\/a>. Below that, registration is optional, but may still be beneficial. For example, if you work with other VAT-registered businesses, you could reclaim VAT on your expenses<\/a>. \u2696\ufe0f<\/p>\n\n\n\n

How to calculate and pay VAT <\/h3>\n\n\n\n

VAT is calculated on your sales and reported quarterly, unless you’re using a different VAT scheme<\/a>. <\/p>\n\n\n\n

It\u2019s another important part of your limited company tax<\/strong> responsibilities. Your VAT rate depends on what you sell, with some items qualifying for reduced or zero rates:<\/p>\n\n\n<\/div> \n\n

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The <\/span>value added tax (VAT) rates<\/b> in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n
<\/td>\nTax rate<\/span><\/td>\nWhat the rate applies to<\/span><\/td>\n<\/tr>\n
Standard rate<\/span><\/td>\n20%<\/span><\/td>\nMost goods and services<\/span><\/td>\n<\/tr>\n
Reduced rate<\/span><\/td>\n5%<\/span><\/td>\nGoods and services like children\u2019s car seats and home energy<\/span><\/td>\n<\/tr>\n
Zero rate<\/span><\/td>\n0%<\/span><\/td>\nGoods and services like most food, books and children\u2019s clothes<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

*Businesses earning more than \u00a390,000 in a tax year must register for VAT. See <\/span>here<\/span><\/a> for more<\/span><\/p>\n\n <\/div>\n<\/div> \n\n

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Employer\u2019s National Insurance contributions <\/h2>\n\n\n\n

As an employer, you\u2019re responsible for National Insurance (NI) contributions. These help fund the state pension and other social benefits. \ud83d\udc69\u200d\ud83d\udcbb<\/strong><\/p>\n\n\n\n

How much employer\u2019s NI does you need to pay? <\/h3>\n\n\n\n

As part of your LTD company tax<\/strong> obligations, you’ll need to pay Employer\u2019s NI on your employees’ earnings:<\/p>\n\n\n<\/div> \n\n

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National Insurance<\/b> rates in the 2025\/26 tax year \ud83d\udc47<\/span><\/p>\n\n\n\n\n\n\n\n
NI class<\/strong><\/td>\nWho pays?<\/strong><\/td>\nHow much?<\/strong><\/td>\n<\/tr>\n
Class 1<\/span><\/td>\nEmployees earning over \u00a312,570<\/span><\/td>\n8% on earnings between \u00a3242 and \u00a3967 per week<\/span><\/p>\n

2% if you earn \u00a3967+ per week<\/span><\/td>\n<\/tr>\n

Class 1A\/1B<\/span><\/td>\nEmployers<\/span><\/td>\n15%<\/span><\/td>\n<\/tr>\n
Class 3<\/span><\/td>\nVoluntary contributions<\/span><\/td>\n\u00a317.75 per week<\/span><\/td>\n<\/tr>\n
Class 4<\/span><\/td>\nSelf-employed earning over \u00a312,570<\/span><\/td>\n6% on profits between \u00a312,570-\u00a350,270<\/span><\/p>\n

2% on profits over \u00a350,270<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n\n <\/div>\n<\/div> \n\n

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Other taxes to consider <\/h2>\n\n\n\n

In addition to the main limited company tax<\/strong> responsibilities we\u2019ve covered, there are a few other taxes you might need to stay on top of:<\/p>\n\n\n\n