Corporation Tax Calculator
Instantly calculate your limited company's tax liability. We automatically apply the new 2023-2026 rules, including complex marginal relief calculations for mid-sized profits.
Your total income before any expenses are deducted.
Staff salaries, office costs, legal fees, and specific tax deductions.
Awaiting Finance Data
Enter your company's gross profit and allowable expenses to view your tax bill and marginal relief.
Deadlines to Remember
You must usually pay your Corporation Tax bill exactly 9 months and 1 day after your accounting period ends.
Understanding the Recent UK Corporate Tax Changes
The End of the Flat Rate
For many years, the UK operated a simple flat Corporation Tax rate of 19%. However, from April 1st 2023, the government introduced a much more complex tiered system designed to extract more tax from highly profitable companies while protecting small startups.
The Three Tax Bands Explained
- Profits £0 to £50,000 (19%)The "Small Profits Rate". If you earn below £50k, nothing changes for you.
- Profits £50,001 to £250,000 (19% - 25% blend)You pay a sliding scale. The closer you get to £250k, the closer your effective rate gets to 25%.
- Profits £250,000+ (25%)The "Main Rate". Applied to EVERY pound of profit once you cross the threshold, meaning no marginal relief.
How to Legally Reduce Your Corp Tax
Salary and Pension Contributions
Paying yourself a higher salary (though this triggers Income Tax) or making direct employer contributions into a SIPP (Self-Invested Personal Pension) are fully allowable expenses that reduce taxable profit.
R&D Tax Credits
If your company is developing new products, software, or processes, you can claim massive deductions against your corporation tax bill under the Research & Development scheme.
Corporation Tax FAQs
Accounting Disclaimer
This calculator provides a simplified estimate of standard UK Corporation Tax liability based on the data entered. It does NOT account for associated companies (which lower the thresholds), R&D tax credits, capital allowances (like 'Full Expensing'), or previous year losses brought forward. Always consult a certified accountant or tax specialist before filing your CT600 return with HMRC.