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)
Main rate
(companies with profits over £300,000)
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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SK Accountants & Tax Consultants is one of the most professional and trusted Accounting Firms I ever dealt with in the UK. They are demonstrating a highly professional standards. Attending all inquiries on an immediate basis. Very Excellent customer service team and most importantly the unconditional care and support from the highly experienced accountants team. Thank you so much SK Accountants. I really recommend as the choice number one in United Kingdom

Abdul Rahman Abdul Majeed

Abdul Rahman Abdul Majeed
It has been a very friendly, reliable and a swift experience for me with SKATAX. They have been very professional & efficient throughout the whole process. I would 100% recommend this firm to all businesses. Thank you KS, you and your team is great 🙂

Azhar Khan

Azhar Khan
I have been with This company SK Accountant and Tax Consultant from last 5 years. They are very helpful in managing accounts and in consultancy. I definitely recommend everyone to use there services.

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Chaudhry Amir
I have used SK accountants and tax consultancy services to deal with one of my tax issues which was very intense and required lots of diligent planning. I was so pleased that the SK team was so proactive in dealing with my case, and their work was so detailed, which helped HMRC understand my tax situation. I would recommend SK to all those looking for proactive tax consultants.

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Danilov alexey
Positive: Professionalism, Quality, Responsiveness I have received consultancy advice from Mohsin Zafar, who has been very professional and helpful and answered many questions that I had. His responses were swift and concise. I recommend this company for consultancy services, they are very knowledgeable

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Elena Zekonyte

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