Running a business in Kent comes with many responsibilities, and one of the most important is making sure you stay on top of your tax obligations. For limited companies, this means paying corporation tax on any profits you make. But what exactly is corporation tax, how much do you need to pay, and are there ways to reduce your bill?
In this guide, we’ll break down corporation tax in simple terms, explain the latest rates and deadlines, and show how small businesses in Kent can benefit from professional advice to stay compliant and save money. At Clayton Stirling & Co, we can help solve any issues you mught be having with your tax billl, we can help if you have got a late penalty, so get in touch today.
What Is Corporation Tax?
Corporation tax is a tax that UK limited companies pay on their profits. Profits include:
- Trading income (money earned from day-to-day operations)
- Investments
- Chargeable gains (such as selling assets for more than you paid)
If you run a limited company in Kent, or a foreign company with a UK branch, you must register for corporation tax with HMRC and file a company tax return each year.
Unlike income tax, there is no personal allowance — corporation tax applies to all taxable profits from the very first pound. You can read more about coporation tax visit the government website.
Corporation Tax Rates in 2025
Since April 2023, corporation tax in the UK has been based on company profits:
- 19% (Small Profits Rate) – for companies with profits of £50,000 or less.
- 25% (Main Rate) – for companies with profits over £250,000.
- Marginal Relief – for companies with profits between £50,000 and £250,000, which gradually increases the rate from 19% to 25%.
Example:
A small business in Kent making £40,000 profit would pay 19% corporation tax = £7,600.
A larger business making £300,000 profit would pay 25% = £75,000.
Key Deadlines You Need to Know
One of the most common pitfalls for small businesses is missing deadlines. Here’s what to remember:
- Corporation tax payment – Due 9 months and 1 day after the end of your company’s financial year.
- Company tax return (CT600) – Due 12 months after the end of your company’s financial year.
- HMRC online filing – All returns must be filed online using HMRC-compatible software.
Missing a deadline can result in fines and interest charges — something every small business wants to avoid.
What Expenses Can You Claim?
Reducing your corporation tax bill isn’t about dodging tax — it’s about making sure you claim everything you’re entitled to. Allowable expenses include:
- Staff salaries and pensions
- Business rent and utilities
- Marketing and advertising costs
- Travel and subsistence (for business purposes)
- Equipment and technology purchases
- Professional fees (like accountants and solicitors)
By keeping accurate records and receipts, you can ensure every allowable expense is claimed, lowering your taxable profit.
Tax Reliefs Small Businesses Should Know
The UK offers several reliefs designed to support businesses and encourage investment. Some of the most valuable include:
- Annual Investment Allowance (AIA) – Lets you deduct the full value of qualifying plant and machinery up to £1m.
- R&D Tax Credits – Available if your company invests in research and development.
- Capital Allowances – Claim tax relief on assets like equipment, machinery, and business vehicles.
- Loss Relief – Offset trading losses against future or past profits to reduce corporation tax.
Many small businesses in Kent don’t realise they qualify for these reliefs — leaving money on the table. Are you unsure if you should become a limited company? Read this blog post When Is The Best Time To Become A Limited Company?
How to Reduce Corporation Tax Legally
Nobody wants to pay more tax than they need to. Some smart ways to reduce your bill include:
- Paying into pensions – Employer contributions are deductible.
- Timing asset purchases – Buying equipment before year-end can maximise allowances.
- Dividend vs salary planning – Structuring how you pay yourself can make a big difference.
- Using a professional accountant – Ensures you don’t miss reliefs and stay fully compliant.
Why Work with a Local Accountant in Kent?
Corporation tax can be complicated, especially for small businesses that don’t have an in-house finance team. Working with a local accountant like Clayton Stirling & Co gives you:
- Expert guidance tailored to your business
- Peace of mind that your company tax return is filed correctly and on time
- Access to tax planning strategies to reduce your bill
- Ongoing advice to support your business growth
Based in Kent, we work with businesses of all sizes across the region, helping them stay compliant while keeping more of their hard-earned profits.
Final Thoughts
Corporation tax is something no limited company can ignore — but with the right planning and advice, it doesn’t have to be a headache. From understanding the latest rates to making the most of allowances and reliefs, there are many ways to manage your tax bill effectively.
At Clayton Stirling & Co, we specialise in helping small businesses in Kent with all aspects of corporation tax — from filing returns to strategic tax planning.
Get in touch today to see how we can help your business save time, reduce tax, and stay compliant.
