2023 Corporation Tax Rates for a Jan to Dec financial year

[XanderMarketing]

Hello. Our financial year runs in calendar years. With the change in corporation tax in April does anyone know how this will be worked out in a case like this?

Do we get corporation tax of 19% of profits for Jan to March and then 25% (or whatever it works out to be) from April to Dec?

Or is there just a total profit for 2023 and the corporation tax rate is averaged out for the 12 months?

Thanks

 

[Daybooks]

Where an accounting period does not fall entirely within one financial year, it may be necessary to apportion the profits of an accounting period on a time basis to the financial years in which the period falls.

The “may” is because if the rates have not changed then no apportionment is required. The new rates are for the financial year 2023 which begins 1 April, 2023. It introduces the small profits rate and other conditions that you should also be aware of.

You effectively create two accounting periods and have them taxed appropriately.