The current corporation tax rate in the U.K. is 19%. After you add up all of your income and work out your allowable deductions, the amount you pay is based on your taxable profits for the year. This category represents the amount you pay after lodging your company tax return for the given period.
The amount of tax arising on profits in this financial year.
What's not included
Other taxes that you pay to HMRC such as PAYE or NI contributions.
How is it taxed?
At the end of your financial year, the company taxable profit will be calculated based on all of the income and allowable expenses that have gone through your ember accounts. The taxable profit will be multiplied by 19% and this is the amount of tax you will pay.
If you are making losses as a company, you can carry these losses forward to offset against your future taxable profits.