VAT And Corporation Tax – A Quick Summary

What Is VAT?

VAT is the tax applied to purchases of services, goods and other taxable supplies.

What Does VAT Stand For?

VAT stands for value-added tax.

What Are VAT Rates?

Rate	% of VAT	Applies to
Standard	20	Most goods and services.
Reduced	5	A secretion of goods and service.
Zero	0	Zero-rated goods and services.

How Do I Pay My VAT Bill?

For same or next day payments:

• Online or telephone banking.
• CHAPS.

What Is Corporation Tax?

Corporation Tax is a tax based on all taxable profits of a UK based company.

Who Has To Pay Corporation Tax?

All UK limited companies will pay corporation tax.

What Are Corporation Rates?

	Financial year 2020-21	Financial year 2021-22	Financial year 2022-23	Financial year 2023-24
Main rate	19%	19%	19%	25%
Small profits rate	N/A	N/A	N/A	19%
Lower threshold	N/A	N/A	N/A	£50,000
Upper threshold	N/A	N/A	N/A	£250,000

How Can I Pay Corporation Tax?

For same or next day payments:

• Online or telephone banking.
• CHAPS.

Read More: