There are several tax incentives that make a limited company a good way to conduct business in the UK. There are, however, specific rules that govern these companies; this page gives a breakdown on some of the most important rules.
Tax percentages on profits
Limited companies currently pay Corporation Tax at a flat rate of 20% on taxable profits. There are some special reliefs and allowances available depending on the nature of your business.
Filing deadlines and penalties
You must file your Corporation Tax return 12 months after the end of your company’s financial year-end, but pay any tax due nine months after the year-end date. You'll receive an automatic penalty of £100 if you don’t meet this deadline, so it pays to do it early.
If your tax return is late for three or more accounting periods in a row, the initial flat-rate penalty increases to £500, with a further £500 charged if you file your return more than three months late.