{"id":21492,"date":"2025-04-09T10:00:00","date_gmt":"2025-04-09T09:00:00","guid":{"rendered":"https:\/\/www.sage.com\/en-gb\/blog\/?p=21492"},"modified":"2026-04-15T16:09:31","modified_gmt":"2026-04-15T15:09:31","slug":"what-is-corporation-tax","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-gb\/blog\/what-is-corporation-tax\/","title":{"rendered":"What is corporation tax?"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tWhat is corporation tax?\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tWhat is corporation tax in the UK, and why does it matter? Learn about corporation tax rates, who pays the tax, and when it\u2019s paid to protect your business. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2025-04-09T10:00:00+01:00\">9 April, 2025<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"What is corporation tax?\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-corporation-tax\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-gb\/blog\/author\/staceymcintosh\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2018\/11\/Stacey-McIntosh-350-1.jpg\" class=\"entry-author__image\" alt=\"\" \/>\t\t\t\t<span class=\"entry-author__name\">Stacey McIntosh<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<p class=\"wp-block-paragraph\">Corporation tax in the UK is a tax on business profits and capital gains, meaning companies must pay a percentage of their earnings to HMRC.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;you\u2019re&nbsp;a business owner or an accountant managing corporation finances,&nbsp;understanding what corporation tax is, why it matters, and how to manage it effectively can&nbsp;help you&nbsp;stay on top of your obligations and keep your&nbsp;company financially healthy.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-who-pays-corporation-tax\">Who pays corporation tax?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Registered businesses&nbsp;operating&nbsp;in the UK must pay corporation tax&nbsp;on&nbsp;their&nbsp;profits.&nbsp;The tax&nbsp;applies to a range of organisations, not just limited companies.&nbsp;Here\u2019s&nbsp;a quick rundown of&nbsp;who\u2019s&nbsp;required to pay&nbsp;corporation tax:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>UK-based limited companies:<\/strong>\u00a0all limited companies registered in the UK must pay corporation tax on their profits.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Foreign companies with UK branches:<\/strong>\u00a0if your company is based outside the UK but has a branch or office in the country, it must pay tax on the profits generated within the UK.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Clubs, cooperatives, and some associations:<\/strong>\u00a0if you manage the accounting of organisations such as clubs or trade associations, you may also be liable for corporation tax.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-are-there-any-exemptions\">Are there any exemptions?<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Yes.\u00a0Not all businesses have to pay corporation tax.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if you are part of a charity or a community amateur sports club, you are usually exempt from corporation tax on certain types of income, such as that used for charitable purposes,\u00a0under<a href=\"https:\/\/www.gov.uk\/corporation-tax\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0HMRC guidelines<\/a>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, the\u00a0organisation\u00a0may be liable for corporation tax on non-primary-purpose trading income.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-are-the-typical-corporation-tax-rates\"><strong>What are the typical corporation tax rates?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www.gov.uk\/government\/publications\/rates-and-allowances-corporation-tax\/rates-and-allowances-corporation-tax\" target=\"_blank\" rel=\"noreferrer noopener\">Corporation tax rates<\/a>\u00a0depend on the amount of taxable profit your company makes in its accounting period,\u00a0and\u00a0you\u2019ll\u00a0need to\u00a0work them out and report them to HMRC rather than waiting for a bill.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-what-percentage-is-corporation-tax\"><strong>What percentage is corporation tax?<\/strong>\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Corporation tax rates in&nbsp;the UK&nbsp;are&nbsp;usually 19% to 25%, depending on your profit level. These tax rates apply to your taxable profits (typically trading profits, investment income, and chargeable gains).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here\u2019s&nbsp;what you need to know about the current rates:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Small profits rate (19%):<\/strong>\u00a0if your company\u2019s profits are \u00a350,000 or less,\u00a0you\u2019ll\u00a0pay 19% corporation tax.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Main rate (25%):<\/strong>\u00a0if your profits are over \u00a3250,000,\u00a0you\u2019ll\u00a0pay the 25% main rate.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Marginal relief (between 19% and 25%):<\/strong>\u00a0if your profits fall between \u00a350,000 and \u00a3250,000, marginal relief can apply so your effective rate increases gradually,\u00a0rather than jumping straight to 25%.\u00a0If your company earns \u00a3100,000 in profit, for example, you\u00a0won\u2019t\u00a0automatically pay the full 25%\u2014marginal relief can reduce your effective corporation tax rate.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, two details often get missed:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Short accounting periods and associated companies<\/strong>\u00a0can change the thresholds. The \u00a350,000 and \u00a3250,000 limits are reduced proportionately if your accounting period is shorter than 12 months, and\u00a0they\u2019re\u00a0also reduced based on the number of associated companies you have.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Non-UK resident companies<\/strong>\u00a0don\u2019t\u00a0always get the same treatment. For example, HMRC notes some cases where non-UK resident companies cannot claim marginal relief, and non-UK resident companies with a UK branch\u00a0are typically taxed\u00a0on UK activities only.\u00a0<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-industry-and-international-nuances-nbsp\"><strong>Industry and international nuances<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">It\u2019s&nbsp;also worth noting that some sectors have special rules and extra charges, such as banks and oil&nbsp;and&nbsp;gas \u201cring fence\u201d profits (which have different rates).&nbsp;&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Banks and building societies<\/strong>\u00a0may pay a 3% bank surcharge on taxable profits above the relevant allowance (\u00a3100 million), on top of corporation tax.\u00a0Since 2011, banks have been subject to the bank levy,\u00a0an annual charge on certain balance-sheet liabilities and equity (including specified deposits), calculated under HMRC rules.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Upstream oil and gas extraction profits<\/strong>\u00a0from the UK\u00a0or its\u00a0continental\u00a0shelf are taxed under a separate regime designed to \u201cring fence\u201d those profits so they\u00a0can\u2019t\u00a0be reduced by losses from other activities.\u00a0There are\u00a0also\u00a0two tiers\u00a0for ring fence\u00a0companies: those\u00a0with profits under\u00a0\u00a350,000 (19% rate) and\u00a0those\u00a0with profits above \u00a3250,000 (30% rate).\u00a0In\u00a02002, the government added\u00a0a\u00a0supplementary\u00a0charge\u00a0for ring fence companies, which currently stands at\u00a010%. On top of that,\u00a0the government introduced\u00a0an\u00a0energy\u00a0profits\u00a0levy\u00a0in 2022,\u00a0which was\u00a0adjusted to\u00a038% in 2024.\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-corporate-tax-reliefs-and-deductions-nbsp-nbsp-nbsp-nbsp-nbsp-nbsp-nbsp-nbsp-nbsp-nbsp\">Corporate tax reliefs and deductions&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">You may be able to reduce your corporation tax bill by claiming tax reliefs and deductions.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Some of the most common include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>R&amp;D tax reliefs<\/strong>: if your business spends money on innovation (for example, developing new products or improving processes), you may be able to claim relief on qualifying R&amp;D costs.\u00a0For expenditure on or after 1 April 2024,\u00a0the RDEC (Research and Development Expenditure Credit) rate is 20%. Loss-making SMEs spending\u00a0at least\u00a030%\u00a0of their total expenditure on\u00a0efforts that\u00a0qualify\u00a0as\u00a0R&amp;D can\u00a0claim an 86% ERIS (Enhanced R&amp;D Intensive Support) deduction\u00a0as well as a payable credit of 14.5%.\u00a0<\/li>\n\n\n\n<li><strong>Capital allowances<\/strong>: instead of deducting the full cost of many assets as a day-to-day expense, you normally claim capital allowances to reduce taxable profits. The most widely used is the Annual Investment Allowance (AIA), which lets businesses deduct 100% of qualifying plant and machinery costs (up to \u00a31 million per year). If you buy assets above the AIA limit (or assets that do not qualify), you typically claim writing down allowances each year\u2014currently 18% for the main rate pool\u00a0(standard assets)\u00a0and 6% for the special rate pool\u00a0(assets with longer economic lives).\u00a0<\/li>\n\n\n\n<li><strong>Full expensing<\/strong>\u00a0(replacing the super-deduction allowance): if your company invests in new qualifying plant and machinery, you may be able to claim full expensing (a 100% first-year allowance) for main-rate items and a 50% first-year allowance for special-rate items (with eligibility rules and exclusions). This replaced the temporary 130% super-deduction, which applied to qualifying expenditure incurred from 1 April 2021 to 31 March 2023.\u00a0\u00a0<\/li>\n\n\n\n<li><strong>Patent box<\/strong>: if your company profits from patented inventions and elects into the regime, the\u00a0patent\u00a0box\u00a0can apply a reduced 10% corporation tax rate to relevant profits from exploiting qualifying patents. This is particularly useful for businesses in technology, engineering, and pharmaceuticals that hold patents on their innovations.\u00a0<\/li>\n\n\n\n<li><strong>Relief for losses<\/strong>: if your company makes a loss, you can usually offset it against\u00a0previous, current, or future profits (subject to HMRC rules), which can reduce your corporation tax bill,\u00a0particularly helpful in difficult financial periods.\u00a0<\/li>\n\n\n\n<li><strong>Reliefs for creative industries<\/strong>: sector-specific reliefs for film, TV, animation, video games, theatre, orchestras, and museum exhibitions. If eligible, you may be able to claim enhanced deductions on production costs or receive\u00a0a\u00a0<a href=\"https:\/\/www.sage.com\/en-us\/blog\/what-is-accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">payable credit<\/a>\u00a0if\u00a0your company makes a loss. If your business is eligible, you can claim a higher deduction on production costs or receive a cash rebate if your company makes a loss.\u00a0<\/li>\n\n\n\n<li><strong>Relief on goodwill and other relevant assets<\/strong>: if your company\u00a0purchases\u00a0another business, you may be able to claim relief on certain intangible assets (including, in some circumstances, goodwill and IP-related assets), depending on the nature of the acquisition and the applicable rules.\u00a0<\/li>\n\n\n\n<li><strong>Disincorporation relief<\/strong>: if your company transitions from a limited company to a sole trader or partnership, this relief may allow certain asset transfers without immediate tax consequences (where available and subject to conditions). For businesses that no longer\u00a0benefit\u00a0from a corporate structure, this system helps you avoid large tax liabilities during the transition.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">By understanding these reliefs, you can plan and find legal ways to reduce your corporation tax bill.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If&nbsp;you&#8217;re&nbsp;unsure which reliefs apply to you, consider speaking to an accountant to maximise your tax savings.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-pay-corporation-tax\">How to pay corporation tax<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Paying corporation tax involves three key steps:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-1-register-for-corporation-tax\">1. Register for corporation tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">When you start a limited company, you must register for corporation tax with HMRC within three months of starting to trade. You can register online using your company&#8217;s 10-digit Unique Taxpayer Reference (UTR).\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-2-prepare-and-file-a-company-tax-return\">2. Prepare and file a company tax return<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">At the end of your company&#8217;s&nbsp;financial year,&nbsp;you&#8217;ll&nbsp;need to file a company tax return (CT600) with HMRC, detailing your:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Business income and expenses\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Taxable profit (used to work out your company tax rate)\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Deductions and reliefs claimed.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Once registered for corporation tax, HMRC will send a &#8220;notice to deliver a company tax return&#8221;,&nbsp;reminding you of your obligation to file.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Even if your company makes a loss or has no corporation tax to pay, you must still prepare and&nbsp;submit&nbsp;a tax return.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your filing deadline is 12 months after the end of your accounting period, but your payment deadline is earlier: you must usually pay any corporation tax due within\u00a0nine\u00a0months and\u00a0one\u00a0day after the end of that period.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-3-pay-corporation-tax\">3. Pay corporation tax<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Corporate taxes paid to HMRC must reach the entity within nine months and one day after the end of your accounting period.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC accepts payments through various methods, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Online banking (Faster Payment\u00a0System\/bank transfer)<\/strong>: often same day or next working day;\u00a0a good\u00a0option\u00a0close to the\u00a0deadline, but\u00a0confirm your bank\u2019s cut-off times to avoid missing it\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>CHAPS\u00a0(Clearing House Automated Payment System)<\/strong>:\u00a0typically\u00a0same working day (before your bank\u2019s CHAPS cut-off);\u00a0useful for last-minute, high-value payments when you need certainty the payment lands on time\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>BACS (Bankers\u2019 Automated Clearing Services)<\/strong>: usually takes around\u00a0three\u00a0working days;\u00a0best\u00a0initiated\u00a0well before the due date to reduce the risk of late-payment interest\/penalties\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Direct Debit<\/strong>: must be set up in advance\u00a0so\u00a0HMRC will collect on the agreed date;\u00a0helpful for avoiding\u00a0late payment,\u00a0as long as\u00a0the mandate is in place early enough\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Corporate credit or debit cards<\/strong>: can be\u00a0quick, but\u00a0may involve processing fees and provider-dependent posting times;\u00a0useful near the deadline only if\u00a0you\u2019re\u00a0confident it will clear in time\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">When making a payment,&nbsp;you&#8217;ll&nbsp;need your 17-character payment reference, unique to your accounting period, which can be found in your HMRC online account.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-when-to-pay-corporation-tax\">When to pay corporation tax<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Corporation tax deadlines are linked to your company&#8217;s&nbsp;financial year, so keeping track of them is crucial.&nbsp;Missing a deadline could mean penalties and interest charges, so staying organised can save you both stress and money.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Tax return deadline<\/strong>: you must file your company&#8217;s tax return within 12 months after the end of your accounting period.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Corporation tax payment deadlines<\/strong>: you need to pay your corporation tax nine months and one day after the end of your accounting period.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">For example, if your company&#8217;s&nbsp;financial year&nbsp;ends on 31 March 2025, your corporation tax payment would be due by 1 January 2026, and your tax return would need to be filed by 31 March 2026.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-why-paying-on-time-matters\">Why paying on time matters<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Paying your corporation tax late&nbsp;isn&#8217;t&nbsp;just an inconvenience. It can lead to&nbsp;serious consequences.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC may issue fines for overdue tax, and any unpaid amount will start accruing interest, increasing your overall tax bill.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Repeated&nbsp;late payments&nbsp;can also draw unwanted attention from HMRC, potentially triggering an investigation into your business finances.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Staying on top of deadlines helps you avoid unnecessary costs and keeps your company in good stead.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-common-mistakes-and-how-to-avoid-them\">Common mistakes (and how to avoid them)<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Even experienced business owners can slip up when it comes to corporation tax.&nbsp;Here are a few pitfalls to watch out for:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Forgetting to register with HMRC<\/strong>: even if your company\u00a0isn&#8217;t\u00a0making a profit, you still need to notify HMRC and file a tax return.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Miscalculating your tax bill<\/strong>: errors in reporting profits or expenses can lead to underpayment penalties.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Missing the payment deadline<\/strong>: the simplest way to avoid this\u00a0is to set up calendar reminders or automate payments so you never miss a due date.\u00a0<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Using&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/sage-business-cloud\/sage-accounting\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting software<\/a>&nbsp;can&nbsp;help you skip these challenges altogether. With features like automated tax calculations, built-in deadline reminders, and direct filing with HMRC, you ensure accuracy and can stay compliant without the hassle.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Instead of manually tracking deadlines or worrying about calculation errors, an intuitive software solution keeps your finances organised and your business running smoothly.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-happens-if-you-miss-a-corporation-tax-deadline\"><strong>What happens if you miss a corporation tax deadline?\u00a0<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">HMRC charges interest on overdue corporation tax from the due date until payment is made. The current&nbsp;late payment&nbsp;interest rate is 7.75% (in effect from 9 January&nbsp;2026).&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Interest applies even if&nbsp;you&#8217;re&nbsp;just a day late and&nbsp;can&#8217;t&nbsp;be appealed.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-filing-penalties-for-late-tax-returns\">Filing penalties for late tax returns<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>1 day late:<\/strong> \u00a3100 fine<\/li>\n\n\n\n<li><strong>3 months late:<\/strong> additional \u00a3100 fine<\/li>\n\n\n\n<li><strong>6 months late:<\/strong> HMRC estimates your tax bill and adds a penalty of 10% of unpaid tax<\/li>\n\n\n\n<li><strong>12 months late:<\/strong> another 10% penalty on unpaid tax.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">If your return is late three times in a row, the \u00a3100 penalties increase to \u00a3500 each.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-how-to-appeal-a-late-payment-penalty\">How to appeal a late payment penalty<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">If you have a reasonable excuse for missing a deadline (such as a serious illness, system failures, or unexpected technical problems when using HMRC&#8217;s online services), you can appeal the penalty through HMRC&#8217;s online service or in writing within 30 days of the penalty notice date.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-efficiently-manage-corporation-tax\">How to efficiently manage corporation tax<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Corporation tax might seem overwhelming, but with reliable accounting software and&nbsp;a simple process, you can keep everything organised and stress-free.&nbsp;&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With corporation tax explained in plain terms,&nbsp;you\u2019ll&nbsp;know&nbsp;what\u2019s&nbsp;due and when.&nbsp;Here\u2019s&nbsp;how to make the process easier:&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-plan-for-tax-bills\">Plan for tax bills<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">The best way to avoid a last-minute rush is to plan.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Keep&nbsp;accurate&nbsp;<a href=\"https:\/\/www.sage.com\/en-us\/blog\/how-to-start-a-bookkeeping-business\/\" target=\"_blank\" rel=\"noreferrer noopener\">financial records<\/a>&nbsp;throughout&nbsp;the year, so you always have a clear picture of your business&#8217;s finances.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Setting aside a&nbsp;portion&nbsp;of your monthly budget for your corporation tax bill can help prevent cash flow issues when the payment deadline arrives.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-use-accounting-software-with-business-tax-functionality\"><strong>Use accounting software with business tax functionality<\/strong>\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Sage Accounting can take much of the busywork out of business tax management by helping you keep clean, HMRC-ready records year-round, including:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Automating day-to-day bookkeeping with invoicing, expense tracking, and bank reconciliation, so your year-end figures are easier to finalise for corporation tax and other business tax needs\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Producing clear reports (like profit and loss and cash flow reports) to support your tax estimates and planning, so\u00a0you\u2019re\u00a0not scrambling at deadline time\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Supporting HMRC-connected filing where applicable, such as\u00a0<a href=\"https:\/\/www.sage.com\/en-gb\/making-tax-digital\/\" target=\"_blank\" rel=\"noreferrer noopener\">Making Tax Digital<\/a>\u00a0(MTD) VAT submissions from within Sage Accounting, reducing manual entry and improving accuracy\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Making corporation tax prep smoother by keeping your transactions organised and exportable for your CT600 workflow (often handled via dedicated corporation tax software), helping you avoid paper trails and rework\u00a0<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-final-thoughts\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To properly file corporation tax, UK rules&nbsp;have to&nbsp;be built into the tools you use. That is the best&nbsp;option&nbsp;for avoiding stress when you prepare the documentation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">With the right approach\u2014and the right&nbsp;<a href=\"https:\/\/www.sage.com\/en-gb\/accounting-software\/tax\/\" target=\"_blank\" rel=\"noreferrer noopener\">tax accounting software<\/a>\u2014you can keep your records organised year-round, apply reliefs correctly, and stay on track with both filing and payment deadlines.&nbsp;Instead of worrying about calculations and compliance, you can focus on confidently growing your business.&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p>Join more than 500,000 UK readers and get the best business admin strategies and tactics, as well as actionable advice to help your company thrive, in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-b1a63862-3fa0-4a5e-bb67-c76b88bbc6b8\"\n\t\t\t\t\t\tclass=\"single-cta__button button button--primary\"\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t>Subscribe now<\/a>\n\t\t\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg\" class=\"single-cta__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-1073797282-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 33vw, 100vw\" \/>\t\t\t<\/div>\n<\/div>\n\n<section class=\"more-topics alignfull has-grey-light-background-color wp-block-sage-post-topics\">\n\t<div class=\"container\">\n\t\t<div class=\"row\">\n\t\t\t<div class=\"col col-12 col-lg-4\">\n\t\t\t\t<h3 class=\"more-topics__title h2\">Browse more topics from this article<\/h3>\n\t\t\t<\/div>\n\t\t\t<div class=\"col col-12 col-lg-8\">\n\t\t\t\t<ul class=\"post-tags__list\">\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tBusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/need-to-know\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tNeed to know\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-gb\/blog\/tag\/tax\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tTax\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-30564 post type-post status-publish format-standard has-post-thumbnail hentry category-strategy-legal-operations tag-business-costs tag-business-finances tag-business-performance tag-making-tax-digital-for-income-tax business_type-small-business business_type-accountants industry-construction card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-1440x810.jpg\" class=\"card-post__image\" alt=\"A landlord outside some properties he owns\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2026\/06\/landlord-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-25T11:09:14+01:00\">25 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/private-landlords-2026-need-to-know-changes\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tNew legal requirements for private landlords in 2026 and beyond\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tIf you let property as a private individual then there&#8217;s been a handful of key changes in 2026\u2014plus more on the horizon. Here&#8217;s what you need to know.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-30495 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-cafe tag-retail tag-tax tag-vat business_type-small-business business_type-medium-sized-business industry-entertainment industry-food-beverage industry-travel-hospitality\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/great-british-summer-savings-vat-reduction-need-to-know\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717-768x405.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1355237717.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-23T11:01:18+01:00\">23 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tSummer VAT cut 2026: What family-facing businesses need to know\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-30318 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-payments business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-ap-automation\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-768x512.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-1128201585-1215x810.jpg 1215w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T16:58:53+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">11 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tAccounts payable automation: How it works, key benefits, and why your business needs it\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-30315 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-e-invoicing business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-electronic-invoice\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-684x384.jpg\" class=\"card-post__image\" alt=\"Dealing with payroll tasks for the business\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-768x513.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-875247398-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T16:16:14+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">9 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is e-invoicing? Advantages and disadvantages of electronic invoicing\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-30313 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-bookkeeping tag-payments business_type-small-business business_type-medium-sized-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-gb\/blog\/what-is-an-automated-billing-system\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg\" class=\"card-post__image\" alt=\"Running a business\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-684x384.jpg 684w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-768x432.jpg 768w, https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2022\/04\/GettyImages-580503469-1-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-06-02T15:54:42+01:00\">2 June, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tWhat is an automated billing system?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>What is corporation tax in the UK, and why does it matter? Learn about corporation tax rates, who pays the tax, and when it\u2019s paid to protect your business. <\/p>\n","protected":false},"author":346,"featured_media":16394,"menu_order":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[6],"tags":[23,135,206,27],"business_type":[4],"lilypad":[],"context":[],"industry":[],"persona":[73,74,75],"imagine_tag":[289,77,109],"coauthors":[353],"class_list":["post-21492","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-bookkeeping","tag-business-finances","tag-need-to-know","tag-tax","business_type-small-business"],"sage_meta":{"region":"en-gb","author_name":"Stacey McIntosh","featured_image":"https:\/\/www.sage.com\/en-gb\/blog\/wp-content\/uploads\/sites\/10\/2023\/09\/GettyImages-658436108.jpg","imagine_tags":{"289":"Accounting and Payroll","77":"Accounting software","109":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice UK","distributor_original_site_url":"https:\/\/www.sage.com\/en-gb\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/21492","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/users\/346"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/comments?post=21492"}],"version-history":[{"count":0,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/posts\/21492\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media\/16394"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/media?parent=21492"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/categories?post=21492"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/tags?post=21492"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/business_type?post=21492"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/lilypad?post=21492"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/context?post=21492"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/industry?post=21492"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/persona?post=21492"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/imagine_tag?post=21492"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-gb\/blog\/api\/wp\/v2\/coauthors?post=21492"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}