A company’s profit is the difference between the total taxable income and the total deductible costs in the reporting period, which is currently the calendar year. There is a tax on the profit, currently 20%, which is called corporation tax.
Through the Corporation Tax, you are obligated to declare all your costs and incomes if you own:
- a limited company (PLC)
- any foreign company with a branch or office in England
- a club, a cooperative or any unincorporated association, such as a community group or a sports club.
After you have submitted the declaration, you are obligated to pay the resulting tax.