Yes, though if you are not earning enough to pay income tax, you are still eligible to have tax relief added to any contributions you make to a pension plan. Nevertheless, the maximum you can pay in is £2,880 a year, or 100% of your earnings, subject to the ‘annual allowance’ restrictions.
Tax relief is adjoined to the contributions at the basic rate of tax (currently 20%), so if you pay in £2,880 net, tax relief of £720 will be added. Hence, the gross contribution into the pension will be £3,600 (£2,880 x 100/80).
Corporation Tax is basically the payment done by Limited Companies on their taxable profits.
19% is decided for the rate of tax on all profits. Please find below the table along with comparative year’s tax rates.
Rates for Corporation Tax Years Starting 1 April
There are different rates for ring fence companies
Rate | 2017 | 2016 | 2015 | 2014 |
---|---|---|---|---|
Small profits rate (companies with profits under £300,000) |
– | – | – | 20% |
Main rate (companies with profits over £300,000) |
– | – | – | 21% |
Main rate (all profits except ring fence profits) | 19 | 20 | 20 | – |
Marginal relief lower limit | – | – | – | £300,000 |
Marginal Relief upper limit | – | – | – | £1,500,000 |
Standard fraction | – | – | – | 1/400 |
Special rate for unit trusts and open-ended investment companies |
20% | 20% | 20% | 20% |
For non-ring fence profits, there is a single Corporation Tax rate of 20% from 1st April 2015.
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