{"id":12902,"date":"2025-05-19T15:12:33","date_gmt":"2025-05-19T15:12:33","guid":{"rendered":"https:\/\/www.clickdo.co.uk\/business-news\/?p=12902"},"modified":"2025-05-20T08:20:08","modified_gmt":"2025-05-20T08:20:08","slug":"uk-business-tax-guide-2025","status":"publish","type":"post","link":"https:\/\/www.clickdo.co.uk\/business-news\/uk-business-tax-guide-2025\/","title":{"rendered":"What You Need to Know About the UK Business Tax In 2025"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69f5129c16147\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69f5129c16147\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/uk-business-tax-guide-2025\/#Different_Types_of_UK_Business_Taxes\" >Different Types of UK Business Taxes<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/uk-business-tax-guide-2025\/#1_Corporation_tax\" >1. Corporation tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/uk-business-tax-guide-2025\/#2_Income_tax\" >2. Income tax<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.clickdo.co.uk\/business-news\/uk-business-tax-guide-2025\/#3_VAT\" >3. VAT<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<p>UK business tax rates, otherwise known as non-domestic tax rates, are taxes that are paid on the occupation of non-domestic property.<\/p>\n<p>The business or corporation tax is paid at the rates that applied in your company\u2019s accounting period.<\/p>\n<p>You needn\u2019t worry if you aren\u2019t an expert in taxes \u2013 this guide will provide you with ample information on the topic, giving you an idea of how much you can expect to pay.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Different_Types_of_UK_Business_Taxes\"><\/span>Different Types of UK Business Taxes<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As a business in the UK, you can expect to be met with a few different types of taxes you\u2019ll have to pay, depending on the factors surrounding your situation. One of those factors is how your company is shaped and the amount of money it\u2019s producing.<\/p>\n<p>For example, everyone in the UK\u2019s online gambling ecosystem, which includes online sportsbooks and casinos, needs to pay a 21% duty for remote operators. That\u2019s actually good news for <a href=\"https:\/\/www.pokerstrategy.com\/online-poker\/uk\/\" target=\"_blank\" rel=\"noopener\">poker sites in the UK<\/a> and the likes, as the main rate for this type of tax in the UK is 25%.<\/p>\n<p>Another factor you should consider when finding out which business taxes you\u2019ll have to pay is how you are going to remunerate yourself, since you are the business owner. Do you get a regular monthly salary, or do you get paid through business drawings? Based on your answers and the factors surrounding your business, there\u2019s a good chance you won\u2019t have to pay all the taxes we are about to mention.<\/p>\n<p>Still, it\u2019s useful to know that, as a business, you might have to face different types of taxes, such as corporate, dividends, and capital gains tax.<\/p>\n<p>Here\u2019s a closer look at the most important ones \u2013 or the ones you are most likely to have to pay.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"1_Corporation_tax\"><\/span>1. Corporation tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-12904\" src=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-corporation-tax-guide-300x200.jpg\" alt=\"uk-corporation-tax-guide\" width=\"300\" height=\"200\" srcset=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-corporation-tax-guide-300x200.jpg 300w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-corporation-tax-guide.jpg 640w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>Corporation tax is a must in two cases: if you structure your business as a limited company, or if you are a foreign company with a UK branch. In these situations, you\u2019ll have to pay your dues annually on any profits your business makes during the fiscal year. Mind you that this will then go beyond just business profit and will include any income your business makes from investments and selling assets.<\/p>\n<p>The number one thing you want to know is how much you\u2019ll have to pay for the corporation tax. There\u2019s a structure based on how much profit you make, so you can expect to pay:<\/p>\n<ul>\n<li>A 19% small profit rate if you are making less than \u00a350,000 per financial year.<\/li>\n<li>The main 25% profit rate for income over \u00a3250,000.<\/li>\n<li>The main profit rate of 25% with the possibility of reduction with the help of <a href=\"https:\/\/www.gov.uk\/guidance\/corporation-tax-marginal-relief\" target=\"_blank\" rel=\"noopener\">Marginal Relief<\/a> for anything between \u00a350,000 and \u00a3250,000.<\/li>\n<\/ul>\n<p>Be careful \u2013 you\u2019ll have to be vigilant when it comes to this type of tax, as it\u2019s not automatically reduced from your company\u2019s profits, and it doesn\u2019t come with a separate bill. It\u2019s up to you and your accountant to keep records of your transactions and calculate the precise amount you ought to pay.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"2_Income_tax\"><\/span>2. Income tax<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Income tax is paid by everyone, and it\u2019s seen in two different forms for businesses:<\/p>\n<ul>\n<li>For employers with employees who pay income taxes on salaries that are over their <a href=\"https:\/\/www.moneyhelper.org.uk\/en\/work\/employment\/how-income-tax-and-personal-allowance-works\" target=\"_blank\" rel=\"noopener\">personal allowance, a sum under \u00a312,570<\/a>, which is deducted from their pay.<\/li>\n<li>For freelancers who mostly do <a href=\"https:\/\/www.clickdo.co.uk\/meaning-of-online-jobs\/\" target=\"_blank\" rel=\"noopener\">online jobs<\/a>, self-employed business owners, and sole traders, who have to pay taxes for anything that\u2019s over the state-wide personal allowance limit.<\/li>\n<\/ul>\n<p>Keep in mind that income tax rates for Scotland differ from the rest of the country, and you\u2019ll have to abide by a strict deadline when paying income tax. That\u2019s why it\u2019s best to work with an accountant who will help you do everything by the book and avoid any penalties that are given to those who are late with their payments.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"3_VAT\"><\/span>3. VAT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-12905\" src=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-value-added-tax-guide-300x300.jpg\" alt=\"uk-value-added-tax-guide\" width=\"300\" height=\"300\" srcset=\"https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-value-added-tax-guide-300x300.jpg 300w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-value-added-tax-guide-150x150.jpg 150w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-value-added-tax-guide-768x768.jpg 768w, https:\/\/www.clickdo.co.uk\/business-news\/wp-content\/uploads\/2025\/05\/uk-value-added-tax-guide.jpg 1024w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/p>\n<p>VAT is another major form of business tax in the UK, which is only paid by VAT-registered businesses. The term refers to \u2018value added tax\u2019, which is usually set at 20% for any goods or services that a VAT-registered business sells.<\/p>\n<p>If you are wondering whether you are obligated to register as a VAT business, know that you only must do it if you make more than \u00a390,000 in taxable turnover in a 12-month span. It\u2019s still possible to become a VAT-registered business if you are under that limit, but it\u2019s not mandatory.<\/p>\n<p>As for whether you should or not register if you have an opportunity to choose, it\u2019s up to you to gauge the benefits and drawbacks of making a decision in any direction. Know that VAT-registered businesses have a lot of responsibilities, and they must abide by many rules pertaining to \u2018zero-rate\u2019 items and paying HMRC their dues.<\/p>\n<p>To know whether you have the option to choose, figure out how big a turnover you\u2019ve made during a 12-month period by adding up all the goods and services, zero-rate items excluded. That will provide you with a number \u2013 if it\u2019s lower than \u00a390,000, the decision is in your hands.<\/p>\n<p>Now that you have a clearer picture of the business taxes you have to consider in the UK in 2025, you should be able to plan your business finance plan.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>UK business tax rates, otherwise known as non-domestic tax rates, are taxes that are paid on the occupation of non-domestic property. The business or corporation tax is paid at the rates that applied in your company\u2019s accounting period. You needn\u2019t worry if you aren\u2019t an expert in taxes \u2013 this guide will provide you with [&hellip;]<\/p>\n","protected":false},"author":3,"featured_media":12903,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[316,69],"tags":[964,965,963,962],"class_list":["post-12902","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-finance","tag-small-business-taxation","tag-tax-regulations-uk","tag-uk-business-tax-2025","tag-uk-business-tax-guide-2025"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/12902","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/comments?post=12902"}],"version-history":[{"count":2,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/12902\/revisions"}],"predecessor-version":[{"id":12907,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/posts\/12902\/revisions\/12907"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/media\/12903"}],"wp:attachment":[{"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/media?parent=12902"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/categories?post=12902"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.clickdo.co.uk\/business-news\/wp-json\/wp\/v2\/tags?post=12902"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}