UK Corporation Tax Calculator

🏢 Company Profit Details

Taxable Profit (£)

Your company's taxable profit after allowable deductions. Alternatively, enter business income below.

Business Income (£)

Total business income before expenses. Used with expenses to calculate taxable profit.

Allowable Expenses (£)

Business expenses that can be deducted for tax purposes.

Capital Allowances (£)

Capital allowances on qualifying business assets.

Non-Trading Income (£)

Income not from trading activities (e.g., interest, property income).

Dividends Paid (£)

Dividends paid to shareholders (for reference only).

Accounting Period / Tax Year

Select the tax year for which you want to calculate Corporation Tax.

Company Type

Select your company type. Associated companies may affect threshold calculations.

📊 Corporation Tax Results

📈

Enter your company profit details above and click "Calculate Corporation Tax" to see your estimated tax.

We'll show you the applicable rate and estimated Corporation Tax.

What Is Corporation Tax?

Corporation Tax is a tax on the profits of UK-limited companies and other incorporated organisations. It is charged on:

Trading profits from business activities
Investment income (including interest and rental income)
Chargeable gains from selling assets

Unlike Income Tax, which is paid by individuals, Corporation Tax is paid by companies directly to HMRC. The rate of Corporation Tax depends on the company's taxable profit for the accounting period.

This UK Corporation Tax Calculator helps company directors, business owners and accountants estimate Corporation Tax liabilities based on company profits. It uses the current UK Corporation Tax rates and thresholds to provide an accurate estimate.

📌 Example: A UK limited company has taxable profits of £75,000 for the 2024-2025 tax year. The calculator determines the applicable rate (Small Profits Rate of 19% as profits are below £50,000 threshold) and estimates Corporation Tax of £14,250, leaving £60,750 profit after tax.

How Corporation Tax Is Calculated

Corporation Tax is calculated by applying the applicable tax rate to the company's taxable profit. The taxable profit is calculated as:

            Taxable Profit = Business Income − Allowable Expenses − Capital Allowances + Non-Trading Income
        

The tax rate applied depends on the level of taxable profit:

Small Profits Rate (19%) — applies to profits of £50,000 or less
Marginal Relief — applies to profits between £50,000 and £250,000
Main Rate (25%) — applies to profits of £250,000 or more

This calculator automatically determines which rate applies and calculates the Corporation Tax liability accordingly.

UK Corporation Tax Rates

For the 2025-2026 tax year, the Corporation Tax rates are:

Small Profits Rate: 19% on profits up to £50,000.00
Main Rate: 25% on profits over £250,000.00
Marginal Relief: Applies to profits between £50,000.00 and £250,000.00

These rates apply to the 2024-2025 and 2025-2026 tax years. For detailed and authoritative information, visit the official GOV.UK Corporation Tax Rates page.

Small Profits Rate and Main Rate

The Small Profits Rate (19%) applies to companies with taxable profits of £50,000 or less. This lower rate is designed to support smaller companies by reducing their Corporation Tax burden.

The Main Rate (25%) applies to companies with taxable profits of £250,000 or more. Companies with profits above this threshold pay the higher rate on all their taxable profits.

For companies with profits between £50,000 and £250,000, Marginal Relief reduces the effective tax rate, creating a gradual transition between the two rates.

For comparison, you might also want to check the UK Tax Rate Calculator for personal tax rates.

What Is Marginal Relief?

Marginal Relief is a tax relief that applies when a company's taxable profits fall between the lower and upper limits (£50,000 to £250,000). It gradually increases the effective tax rate from the Small Profits Rate (19%) to the Main Rate (25%) as profits increase.

The relief effectively reduces the Corporation Tax bill for companies that would otherwise face a sudden jump in tax when their profits exceed the lower limit. This ensures a smoother transition between the two rates.

For companies with associated companies, these thresholds are divided by the number of associated companies. This calculator provides an estimate for standard companies without associated companies.

For more detailed information, refer to GOV.UK's guidance on Corporation Tax rates and reliefs.

What Counts as Taxable Company Profit?

Taxable profit is not the same as accounting profit. Several adjustments are made to accounting profit to arrive at the taxable profit figure for Corporation Tax purposes.

Key components of taxable profit include:

Trading income — profits from the company's main business activities
Non-trading income — interest, rental income, and other investment income
Chargeable gains — profits from selling business assets
Less: allowable business expenses
Less: capital allowances
Plus: certain disallowable expenses (e.g., entertainment costs)

If you're self-employed or a sole trader, you might be interested in our UK Self Employed Tax Calculator instead.

Allowable Expenses and Corporation Tax

Allowable expenses are costs that can be deducted from business income before calculating Corporation Tax. These typically include:

Staff salaries and wages
Office costs and utilities
Travel and subsistence (business-related)
Marketing and advertising costs
Professional fees (accountants, solicitors)
Rent and business rates
Insurance premiums
Repairs and maintenance

Not all business costs are allowable. For example, entertainment expenses and fines are generally not deductible for tax purposes. This calculator allows you to enter your allowable expenses to estimate your taxable profit.

Capital Allowances and Corporation Tax

Capital allowances are tax deductions for the cost of qualifying business assets (capital expenditure). Instead of deducting the full cost of an asset in one year, you can claim capital allowances over time.

Common capital allowances include:

Annual Investment Allowance (AIA) — 100% relief on qualifying plant and machinery up to £1 million
Writing Down Allowance — relief on assets not covered by AIA
Full Expensing — 100% relief on certain new plant and machinery

This calculator includes a capital allowances field to help you estimate your taxable profit. However, calculating the exact capital allowance claim can be complex, and you should consult a qualified accountant for detailed advice.

Corporation Tax vs Income Tax

Corporation Tax and Income Tax are different taxes charged on different entities:

Corporation Tax is paid by companies on their company profits.
Income Tax is paid by individuals (including sole traders, partners, and employees) on their personal income.

Company directors who take a salary from their company will pay Income Tax and National Insurance on that salary. However, dividends received from the company may also be subject to Income Tax (though at different rates).

The Corporation Tax paid by the company does not reduce the Income Tax payable by the shareholder on dividends, although the dividend tax credit was abolished in 2016.

Use our UK Income Tax Calculator for personal income tax calculations.

Corporation Tax and Dividends

It's important to understand that dividends are not a deductible expense for Corporation Tax purposes. Dividends are distributions of after-tax profits to shareholders and do not reduce the company's taxable profit.

This is a common misconception. When a company pays a dividend:

The dividend is paid from post-tax profits (profits after Corporation Tax has been deducted).
The dividend itself does not reduce the company's Corporation Tax bill.
Shareholders may be liable for Income Tax on dividends (with an annual dividend allowance).

This calculator includes a dividends field for your reference, but dividends do not affect the Corporation Tax calculation.

For more information on dividend taxation, see the GOV.UK Dividend Tax guidance.

Example Corporation Tax Calculations

Example 1: Small Profits Rate

Company: ABC Trading Ltd

Taxable Profit: £40,000

Tax Rate: Small Profits Rate (19%)

Corporation Tax: £40,000 × 19% = £7,600

Profit After Tax: £40,000 − £7,600 = £32,400

Example 2: Marginal Relief

Company: XYZ Solutions Ltd

Taxable Profit: £120,000

Tax Rate: Marginal Relief Applied

Corporation Tax: £120,000 × 25% − Relief = £24,000

Profit After Tax: £120,000 − £24,000 = £96,000

Effective Rate: 20.0%

Example 3: Main Rate

Company: Global Industries Ltd

Taxable Profit: £300,000

Tax Rate: Main Rate (25%)

Corporation Tax: £300,000 × 25% = £75,000

Profit After Tax: £300,000 − £75,000 = £225,000

These examples illustrate how Corporation Tax varies based on the level of taxable profits. Use this calculator to estimate your own Corporation Tax liability.

Who Pays Corporation Tax?

Corporation Tax is paid by:

UK limited companies — all profits from UK and non-UK sources (depending on residency)
Foreign companies with a UK branch or office
Members' clubs and associations
Co-operatives and other incorporated organisations
Certain charities on trading income (though charities have special reliefs)

Sole traders, partnerships, and LLPs (Limited Liability Partnerships) are generally subject to Income Tax rather than Corporation Tax. If you're a sole trader, you may want to use our UK Self Assessment Tax Calculator.

For comprehensive information on who pays Corporation Tax, visit the GOV.UK Corporation Tax guidance.

When Do You Pay Corporation Tax?

Corporation Tax is typically due 9 months and 1 day after the end of your company's accounting period. For example, if your accounting period ends on 31 March, your Corporation Tax is due on 1 January the following year.

You must also:

Notify HMRC if your company is liable for Corporation Tax
File a Company Tax Return (CT600) within 12 months of the accounting period end
Pay any Corporation Tax due by the payment deadline

Large companies may need to pay Corporation Tax in instalments. This calculator provides an estimate of your Corporation Tax liability, but you should confirm payment deadlines and obligations with HMRC.

For up-to-date information on payment deadlines, see the GOV.UK Corporation Tax deadlines page.

If you run a business and need to estimate employer taxes, our UK Employer Tax Calculator may also be useful.

Frequently Asked Questions

What is Corporation Tax in the UK? +

Corporation Tax is a tax on the profits of UK-limited companies and other incorporated organisations. It applies to trading profits, investment income, and chargeable gains. The current rates are 19% for profits up to £50,000 (Small Profits Rate) and 25% for profits over £250,000 (Main Rate).

How is Corporation Tax calculated? +

Corporation Tax is calculated by applying the applicable tax rate (Small Profits Rate, Main Rate, or Marginal Relief) to the company's taxable profit. Taxable profit is calculated as business income minus allowable expenses, minus capital allowances, plus non-trading income. This calculator automatically applies the correct rate.

What is the UK Corporation Tax rate? +

For the 2024-2025 tax year, the Corporation Tax rates are: Small Profits Rate of 19% on profits up to £50,000, Main Rate of 25% on profits over £250,000, and Marginal Relief applying to profits between £50,000 and £250,000. These rates are subject to change based on government announcements.

What is the Small Profits Rate? +

The Small Profits Rate is a reduced Corporation Tax rate of 19% that applies to companies with taxable profits of £50,000 or less. This lower rate helps support smaller companies by reducing their Corporation Tax burden.

What is Marginal Relief? +

Marginal Relief is a tax relief that applies when a company's taxable profits fall between £50,000 and £250,000. It gradually increases the effective tax rate from 19% to 25% as profits increase, ensuring a smooth transition between the Small Profits Rate and the Main Rate.

Do dividends reduce Corporation Tax? +

No, dividends paid to shareholders do not reduce Corporation Tax. Dividends are distributions of after-tax profits and are not considered a deductible business expense. This is a common misconception — dividends are paid from profits after Corporation Tax has been calculated.

What expenses can reduce taxable company profit? +

Allowable expenses that can reduce taxable company profit include staff salaries, office costs, travel expenses (business-related), marketing costs, professional fees, rent, insurance, and repairs and maintenance. However, entertainment expenses and fines are generally not allowable deductions.

When does a company pay Corporation Tax? +

Corporation Tax is generally due 9 months and 1 day after the end of your company's accounting period. You must also file a Company Tax Return (CT600) within 12 months of the accounting period end. Large companies may need to pay in instalments.

Does this calculator include associated companies? +

This calculator provides an estimate for standard companies without associated companies. If your company has associated companies, the £50,000 and £250,000 thresholds are divided by the number of associated companies. You should consult the official HMRC rules or a qualified tax professional for accurate calculations involving associated companies.

Is this an official HMRC Corporation Tax calculator? +

No, this is not an official HMRC Corporation Tax calculator. It is an independent estimation tool designed to help company directors and business owners understand their potential Corporation Tax liability. For official calculations, you should file your Company Tax Return with HMRC or consult a qualified tax professional.

How much is £100,000 company profit after Corporation Tax? +

For a company with £100,000 taxable profit, Marginal Relief applies (profits between £50,000 and £250,000). The Corporation Tax would be approximately £21,000, leaving approximately £79,000 profit after tax. The exact amount depends on the applicable Marginal Relief calculation.

Related UK Tax Calculators

Explore our other tax calculators to help you understand your tax position:

UK Tax Calculator UK Income Tax Calculator UK Self Employed Tax Calculator UK Self Assessment Tax Calculator UK PAYE Tax Calculator UK Tax and NI Calculator UK Tax Rate Calculator UK Personal Tax Calculator UK After Tax Calculator UK Business Tax Calculator UK Limited Company Tax Calculator UK Contractor Tax Calculator

Adnan Ahmed

Adnan Ahmed is the author and developer behind TaxCalculatorHelp.co.uk. With a focus on creating accurate, user-friendly UK tax calculators, Adnan helps individuals and businesses understand their tax obligations through clear, accessible tools and educational content.