UK Corporation Tax Calculator (19% - 25% Margins)

The UK Corporation Tax Calculator is a corporate tax planning tool designed for limited company directors and small business owners in the United Kingdom to calculate their corporation tax liabilities and evaluate the benefit of HMRC Marginal Relief.

Corporation Tax is paid by UK limited companies on their taxable profits (gross business revenues minus deductible business expenses, salaries, and capital allowances):

• Small Profits Rate (19%): Applies to companies with annual taxable profits of £50,000 or less.

• Main Rate (25%): Applies to companies with annual taxable profits exceeding £250,000.

• Marginal Relief (Effective 26.5% rate): For companies with profits between £50,000 and £250,000, tax is calculated using the main rate of 25% but is reduced by a Marginal Relief fraction. This creates an effective marginal tax rate of 26.5% on the portion of profits that falls within this middle band.

• Tax-Deductible Business Expenses: Unlike sole traders, limited companies can reduce corporation tax by paying directors a salary, making employer pension contributions, or claiming capital allowances on business assets.

This calculator computes your limited company corporation tax liability, applies Marginal Relief adjustments where applicable, and displays your net profit after tax and effective tax rate.

1. Input annual business profit. 2. View corporation tax owed, net profit, and effective rate.