Do I Still Need to Pay Corporation Tax if My UK Company Made No Profit This Year?
If your business barely broke even this year—or even dipped into a loss—you’re probably wondering the same thing thousands of UK company owners ask:
“Do I still have to pay corporation tax if my company made no profit?”
The short answer?
No, you don’t have to pay corporation tax on £0 profit—but you DO still have responsibilities with HMRC.
And this is exactly where many businesses get caught out with penalties.
In this post, we’ll break down exactly what you must do, what you can claim, and how expert support from Coxhinkins’ Corporation Tax Services can help you stay compliant while using every legal way to reduce corporation tax in the UK.
Let’s make this simple.
Do You Need to Pay Corporation Tax With Zero Profit?
Here’s the good news first:
If your company made no profit, you do not have to pay corporation tax.
HMRC taxes profits—not turnover, not revenue, not cash in the bank.
So if your business didn’t generate taxable profit, your corporation tax bill is £0.
But here’s the catch that many directors don’t realise:
You still need to file your Company Tax Return (CT600).
Even if:
- You made zero profit
- You made a loss
- You didn’t trade for part of the year
- The business was quiet or inactive
HMRC still expects your CT600 return, and Companies House still expects your statutory accounts.
And if you don’t file?
You risk late filing penalties that start at £100 and increase quickly—even if the tax due is zero.
That means the filing obligation still stands, regardless of profit.
What If Your Company Made a Loss? (Important!)
If you made a loss, you might assume that’s the end of the story.
But actually, losses can be extremely valuable when it comes to reducing tax later.
This is where loss relief comes in—one of the best ways to reduce corporation tax in the UK.
You may be able to:
- Carry losses forward
Use losses from this year to reduce your future corporation tax bills.
- Carry losses back (in some situations)
If you made profits in previous years, you may be able to offset this year’s losses against them and get a tax refund.
- Use group relief (if you have multiple companies)
Losses in one company can sometimes reduce profit in another.
Most business owners miss out on these because the rules can be complex.
This is exactly where professional accountants—like Coxhinkins—help you save money.
When You Might Owe Tax Even With No Profit
Here’s something many businesses overlook:
Even if you didn’t make a trading profit, you could still owe corporation tax if you received:
- investment income
- rental income
- interest
- gains from selling an asset
- insurance payouts
- certain grants or non-trading income
So “no profit” doesn’t always mean “no corporation tax.”
Again, having an expert check your numbers is the safest way to make sure you’re not missing anything.
Why Filing Your Company Tax Return Still Matters
Even when your tax bill is £0, filing is still essential.
Here’s why:
- Avoid HMRC penalties
£100 late filing penalty for day one.
£200 penalty after three months.
Daily penalties after longer delays.
These penalties apply even when no tax is due.
- Maintain good financial standing
Lenders, investors, and banks check your filing history.
- Keep your business compliant
HMRC is strict on deadlines regardless of profit.
- Protect your right to claim future loss relief
If you don’t report your losses properly, you could lose the chance to use them.
How Coxhinkins Helps You Stay Compliant (and Save Tax)
Filing corporation tax when you’ve made no profit seems simple—but mistakes happen easily, especially when you’re juggling everything else in your business.
Coxhinkins makes the process effortless with expert Corporation Tax Services designed for small and growing UK businesses.
Here’s how they help:
- File your CT600 on time
So you avoid unnecessary penalties.
- Prepare accurate statutory accounts
Ensuring they meet HMRC and Companies House requirements.
- Identify every tax relief you’re eligible for
Including loss relief, capital allowances, and other opportunities to reduce corporation tax in the UK.
- Keep your books clean and compliant
So you’re always HMRC-ready without the stress.
- Provide ongoing tax advisory support
So you never overpay a penny more than legally required.
You focus on running your business.
Coxhinkins handles the numbers, filings, and tax rules.
Quick Checklist: What YOU Need to Do (Even With No Profit)
Before the HMRC deadline, make sure you:
- File your Company Tax Return (CT600)
- Submit your annual accounts to Companies House
- Keep your bookkeeping up to date
- Record any losses correctly
- Explore loss relief options
- Get advice on reducing corporation tax in the UK
- Confirm whether any non-trading income is taxable
If any of this feels overwhelming, don’t worry—most UK business owners feel exactly the same.
And that’s why professional help makes such a difference.
Final Thoughts
So, do you need to pay corporation tax if your UK company made no profit this year?
No—but you DO still need to file your returns, stay compliant, and plan ahead.
You might even be able to use this year’s losses to reduce future tax.
If you want the peace of mind that everything is filed correctly—and that you’re saving as much tax as legally possible—Coxhinkins is here to help.
Let Coxhinkins handle your Company Tax Filing so you never overpay or miss a deadline again.
Would you like a shorter version for social media or a landing page version as well?
