How much can a limited company earn before paying tax in the UK?

In the UK, limited companies are subject to corporation tax on their profits. The rate of corporation tax for the tax year 2021-2022 is 19%.

The amount of profit that a limited company can earn before paying tax in the UK will depend on a number of factors, including the company's expenses, allowances, and reliefs. For example, a limited company can deduct certain business expenses from its profits before calculating its corporation tax liability. These expenses might include things like staff salaries, rent, and utilities.

In addition, a limited company may be entitled to claim various allowances and reliefs that can reduce its corporation tax liability. For example, the Annual Investment Allowance allows a limited company to claim a tax deduction on certain investments in plant and machinery.

There is no specific profit threshold at which a limited company in the UK becomes liable to pay corporation tax. However, the company will be required to pay tax on its profits at the applicable rate once it starts making a profit.