Corporation Tax Calculator
Estimate your company's Corporation Tax for FY2025/FY2026 — small profits rate, main rate and marginal relief, including associated companies and short accounting periods.
Your Company
Taxable total profits for the accounting period, after all allowable deductions and capital allowances.
Usually 12. The £50,000 and £250,000 limits are reduced proportionately for shorter periods.
Companies under common control (worldwide, excluding dormant ones). The limits are divided between this company and its associates.
FY2025 & FY2026 (1 April 2025 – 31 March 2027) — small profits rate 19%, main rate 25%, marginal relief fraction 3/200. Rates are identical in both financial years. Ring fence (oil & gas) profits are not modelled.
Results
Corporation Tax
25% less marginal relief of £2,250.00
Effective Rate
Tax as a share of taxable profits
Marginal Relief
3/200 × (upper limit − profits)
Profit After Tax
Available for dividends or retention
Marginal Rate
Tax on the next £1 of profit
Your limits
In the marginal relief band every extra £1 of profit is effectively taxed at 26.5% — higher than the 25% main rate. Pension contributions or other allowable deductions in this band give unusually good tax relief.
Assumes no dividend (exempt distribution) income received. If your company receives dividends from outside its group, they count towards "augmented profits" when testing the limits and slightly reduce marginal relief (the N/A factor in HMRC's formula).
Guide & Information
Overview
Understanding Corporation Tax Calculator is essential for financial planning in United Kingdom. This calculator simplifies complex tax calculations.
💡 Tips
- •Keep all relevant documents organized
- •Calculate regularly to avoid surprises
- •Consider consulting a tax professional for complex situations
Why Use This Corporation Tax Calculator
Accurate tax calculation helps you avoid penalties and optimize your financial situation.
United Kingdom Regulations
This calculator follows current United Kingdom regulations and is updated regularly to reflect changes in legislation. All calculations comply with HMRC requirements.
Regulations: Complies with current United Kingdom regulations.
- • Example: Annual income of £50,000
- • Tax calculation includes federal and local rates
- • Deductions may apply based on family situation
Related Calculators
Frequently Asked Questions
How is Corporation Tax Calculator calculated in United Kingdom?
The Corporation Tax Calculator in United Kingdom is calculated based on current tax regulations. Input your values above to get an accurate calculation based on the latest rates and rules.
When do I need to pay Corporation Tax Calculator?
Payment schedules vary based on your specific situation. This calculator helps you determine the amount owed and plan accordingly.
What documents do I need for Corporation Tax Calculator?
Typically, you'll need income statements, previous tax returns, and relevant receipts. Use this calculator to estimate your obligation before filing.
Frequently asked questions
What are the Corporation Tax rates for 2025 and 2026?
Unchanged in both financial years (1 April 2025 – 31 March 2027): the small profits rate is 19% where taxable profits are £50,000 or less, and the main rate is 25% where profits are £250,000 or more. Between those limits the whole profit is taxed at 25% and then reduced by marginal relief, giving an effective rate that climbs gradually from 19% to 25%.
How is marginal relief calculated?
Relief = 3/200 × (upper limit − profits), assuming no exempt dividend income. For example, with £190,000 of profits in a 12-month period: tax at 25% is £47,500, marginal relief is 3/200 × (£250,000 − £190,000) = £900, so the bill is £46,600 — an effective rate of about 24.5%. HMRC also publishes an online marginal relief calculator giving the same result.
What counts as an associated company?
Broadly, a company under common control with yours at any time in the accounting period — for instance two companies owned by the same person — counted worldwide but excluding dormant companies. The £50,000 and £250,000 limits are divided by the total number of associated companies plus your own: with one associate the limits become £25,000 and £125,000.
Why is the marginal rate 26.5% between £50,000 and £250,000?
Because marginal relief tapers away as profits rise, each extra £1 of profit in the band increases the bill by 26.5p (25p of main-rate tax plus 1.5p of lost relief). That makes deductions such as employer pension contributions especially valuable for companies with profits in this range.
What happens if my accounting period is shorter or longer than 12 months?
For a short period, the £50,000 and £250,000 limits are reduced proportionately — a 9-month period gives limits of £37,500 and £187,500. An accounting period cannot exceed 12 months: a longer period of account is split into two accounting periods (the first 12 months, then the remainder), each with its own return and pro-rated limits.
When is Corporation Tax due?
For most companies, 9 months and 1 day after the end of the accounting period, with the CT600 return due 12 months after the period end. Companies with profits above £1.5 million (shared across associated companies) must instead pay by quarterly instalments.