Corporation Tax Rates 2024/25: What You'll Pay

Current Corporation Tax rates and the marginal relief band explained.

Why this matters for digital businesses

Corporation Tax planning starts with accurate company profit, not just the headline rate. Digital companies often have timing differences between marketplace payouts, invoice dates, subscription revenue, ad spend, stock purchases, director pay, and dividends. Understanding the rate band is useful, but the bigger opportunity is making sure taxable profit is measured correctly before the company reaches the filing deadline.

Key checks before you act

• Reconcile company sales, fees, refunds, and bank deposits before calculating profit.
• Review director salary, dividends, pension contributions, and benefits before year end.
• Check capital allowances for equipment, computers, cameras, warehouse tools, and software.
• Separate company costs from personal costs paid through the company account.

Common mistakes to avoid

• Estimating Corporation Tax from bank balance rather than accounting profit.
• Leaving director pay and dividend planning until after the year end.
• Missing allowable company costs because invoices are scattered across platforms.

Next steps

1. Prepare a quarterly profit estimate so tax is not a year-end surprise.
2. Review director extraction strategy before the company year end.
3. Keep a fixed asset list for equipment and larger software or setup costs.

Questions digital businesses ask