Corporation Tax Calculator UK

Corporation tax is one of the main taxes paid by limited companies each year. It is based on your company’s taxable profits and is reported to HMRC using the CT600 form. You can use our tax calculator to work out how much you might owe. This tax is paid annually and usually aligns with your company’s financial year.

Calculate Your Company Tax Liability Using Our UK Corporation Tax Calculator

This calculator helps you figure out how much corporation tax your limited company owes. The tax is based on your net profit before taxes.

All UK companies, including contractor limited companies, PLCs, clubs, membership organisations, and associated companies, must pay corporation tax on profits. It is calculated and paid once a year, usually aligned with your company’s financial year.

How to Calculate Corporation Tax with Our Tool

Choose your company year-end. This is the end of your accounting period, usually the last day of a month. If you need a corporation tax 2023/24 calculator, we can help with that too.
Enter your turnover. This is the total amount your company expects to invoice for the year. If you’re VAT registered, exclude VAT from this number.
Estimate your expenses. Use your previous accounts and CT600 as a guide if available. Exclude client entertainment costs. If you’ve bought assets, replace depreciation with the purchase cost of the asset. For VAT-registered businesses on the standard rate scheme, exclude VAT from all calculations.

Why Use Our Limited UK Corporation Tax Calculator?

Benefits of our limited company tax calculator for corporation tax calculation:

Accurate Results:

The calculator uses the most up-to-date tax rates and rules to ensure precision.

Fast Calculations:

Instantly find out your tax liability without any delays or complicated steps.

Save Time and Avoid Mistakes:

Quickly calculate your taxes and reduce the chances of errors with reliable results every time.

Financial Planning Made Easy:

Knowing your tax obligations helps you make better decisions about spending, saving, and investing.

Always Updated for Tax Changes:

Our accountants regularly update the tool to reflect the latest tax laws, so you can trust the information is current and accurate.

FAQs

What is Corporation Tax?

Limited company contractors must pay corporate taxes, but sole traders are exempt. Corporation tax is calculated on a company’s taxable profits. These profits are determined by adjusting the net profit to account for specific expenses and allowances. You can use our calculator to check how the new rate affects your tax. Every year, companies are required to file a company tax return and pay their corporation tax to HMRC.

The corporation tax main rate for 2024 / 2025 is the percentage of a company’s profits paid to the UK government. The main rate is 25% and applies to profits over £250,000.

When did the UK Corporation Tax rate rules change?

Corporation tax increased from a flat rate of 19 percent to 25 percent on 1 April 2023. The government has committed to keeping the rate at 25% until 2029.

When do I need to pay my UK Corporation Tax by?

You need to file your tax return within 12 months after your accounting period ends. Missing the deadline will result in a late filing penalty. Paying your Corporation Tax has a different deadline, usually 9 months and 1 day after the end of your accounting period.

How do I know if HMRC got my Corporation Tax bill payment?

Log in to your HM Revenue and Customs (HMRC) online account to check if your payment has been processed. Updates are usually made a few days after the payment is received.

How is marginal relief calculated?

Marginal relief is calculated using the formula F × (U − A) × (N ÷ A).

Here’s what each term means:

F is the standard marginal relief fraction set by Parliament for the financial year (CTA 2010, s. 18B(3)).
U is the upper limit.
A is the augmented profits.
N is the taxable total profits (CTA 2010, s. 4).

What are augmented profits?

The augmented profits of a company for an accounting period are defined under CTA10/S32. They include the taxable total profits for that period, as outlined in CTA10/S4 (2) and (3), along with any franked investment income received during the period. However, this excludes franked investment income from other companies within the same group.