A Business Owner’s Guide to What Is Taxable for Companies in the UK

 

Running a business in the UK means understanding your tax obligations. Whether you’re a limited company, partnership, or sole trader considering incorporation, knowing what is taxable (and what isn’t) helps you stay compliant and avoid unexpected surprises. 

 

Below, we break down the main areas of taxation for companies in the UK, and how JSB Accountants can support you. 

 

 

The biggest tax most UK companies face is Corporation Tax. This applies to the profits your company makes, including: 

 

Trading profits, money earned from your main business activities. 

 

Investment income, for example, interest from bank accounts or investments. 

 

Chargeable gains, profits from selling assets like property, land, or shares. 

 

💡 Current rates (2025): 

 

Small profits (up to £50,000) are taxed at 19%. 

 

Profits over £250,000 are taxed at the main rate of 25%. 

 

Anything in between is subject to marginal relief, which gradually increases the rate. 

 

✅ How JSB Accountants can help: We make sure your company’s corporation tax is calculated accurately, help identify reliefs and allowances, and file returns on time so you avoid penalties. 

 

 

If your company’s taxable turnover exceeds the VAT registration threshold (currently £90,000 per year), you must register for VAT. 

 

VAT is charged on most goods and services your business sells, though some are zero rated or exempt. 

 

✅ How JSB Accountants can help: From registering your business for VAT to preparing returns and advising on schemes like Flat Rate or Cash Accounting, we take the stress out of VAT compliance. 

 

 

If you employ staff, your company is responsible for: 

 

PAYE (Pay As You Earn): Deducting Income Tax and National Insurance (NI) from wages. 

 

Employer’s NI Contributions: Currently 13.8% on most salaries above £9,100 per year. 

 

Apprenticeship Levy: 0.5% of your company’s annual pay bill, if it exceeds £3 million. 

 

✅ How JSB Accountants can help: We provide complete payroll support, ensuring your employees are paid correctly and HMRC requirements are met. 

 

 

If your company provides perks, like company cars, private medical insurance, or interest-free loans, these are called benefits in kind. 

 

They’re reported via P11D forms and subject to Income Tax for the employee and Class 1A National Insurance for the company. 

 

✅ How JSB Accountants can help: We’ll calculate and report benefits in kind correctly, helping you stay compliant without the admin headache. 

 

 

If your company uses offices, shops, warehouses, or factories, you’ll usually pay business rates. 

 

✅ How JSB Accountants can help: While we can’t set your rates, we can advise on reliefs and exemptions, making sure you’re not paying more than necessary. 

 

 

Depending on your industry, other taxes may apply, such as: 

 

Construction Industry Scheme (CIS) deductions. 

 

Customs duties for imports. 

 

Digital Services Tax (being phased out). 

 

✅ How JSB Accountants can help: We’ll guide you through industry-specific taxes and help keep your business ahead of changing regulations. 

 

 

Some inflows aren’t taxable, such as: 

 

Loan capital or money borrowed. 

 

Shareholder equity (money invested into the company). 

 

VAT collected on sales (since it’s passed to HMRC). 

 

 

Company taxation in the UK covers a wide range of obligations, from corporation tax and VAT to payroll taxes and more. The exact liabilities depend on your business size, sector, and structure. 

 

That’s where JSB Accountants come in. We don’t just crunch numbers, we provide tailored advice, ensure compliance, and help you plan ahead so your business runs smoothly and tax-efficiently. 

 

👉 Whether you need one-off guidance or full accounting support, JSB Accountants are here to help.