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


Small profits rate
(companies with profits under £300,000)


Main rate
(companies with profits over £300,000)

-   -     -  21%

Main rate (all profits except ring fence profits)

  19 20  20   -

Marginal relief lower limit

  - -  - 


Marginal Relief upper limit








Standard fraction






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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