Corporation Tax is a tax that UK limited companies, PLCs, and certain organisations pay on their taxable profits. Unlike sole traders, limited companies do not benefit from a personal allowance, meaning every pound of profit is potentially taxable.
Profits include:
The rate of Corporation Tax your company pays depends on how much profit you make and whether you fall into the Small Profits Rate, Main Rate, or the Marginal Relief band.
| Profit Margin | Corporation Tax Rate | Notes |
|---|---|---|
| Profits under £50,000 | 19% (Small Profits Rate) | Designed for smaller companies |
| Profits over £250,000 | 25% (Main Rate) | Applies to larger businesses |
| Profits between £50,000 and £250,000 | 25% with Marginal Relief | Provides a gradual increase in tax rate |
Your Corporation Tax is due 9 months and 1 day after the end of your accounting period. An accounting period usually matches your financial year.
For example:
Missing these deadlines can result in penalties and interest from HMRC.
Our calculator is designed to give you:
Whether you’re a small business owner, a contractor running a limited company, or a growing enterprise, this tool gives you clarity on your tax position for the 2025/26 financial year.
This Corporation Tax Calculator is for illustrative purposes only and should not be considered professional tax advice. Actual Corporation Tax liabilities depend on HMRC rules, allowances, and your company’s individual financial situation.
We recommend using this calculator as a general guide. Please consult with a qualified accountant or tax adviser before making financial or tax decisions.
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