As you may recall, in the Spring budget 2021 it was announced that Corporation Tax would rise to 25% in April 2023 for Companies with more than £250,000 profits. It was also announced there would be a taper of the increased rate cutting in at a profit level of £50,000.
Broadly, this means any company making more than £50,000 in profits will see a rise in their Corporation Tax costs.
More over the £250,000 and £50,000 thresholds are split between connected businesses, so if you had two companies, then the respective thresholds will halve.
We’ve prepared a briefing looking at:
– How these changes work in practice and marginal tax rates
– The effects if you have more than one company, or you have close family members also operating a company
– How pros and cons of Self Employed v Company change, especially the relative tax rates