Calculate UK corporation tax
Enter your company's taxable profit to see the corporation tax due and your effective rate, including marginal relief.
- Corporation tax
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- Effective rate
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Corporation tax: —. Effective rate: —
What is corporation tax?
Corporation tax is the tax UK limited companies pay on their taxable profits — trading profits, investment income, and chargeable gains from selling assets. Companies must calculate, report, and pay it themselves; there's no bill sent automatically.
What are the UK corporation tax rates?
As of April 2024, the main rate is 25% and applies to taxable profits above £250,000. A small profits rate of 19% applies to profits of £50,000 or less. Profits between the two thresholds are taxed at the main rate, reduced by marginal relief.
How does marginal relief work?
Marginal relief tapers the jump from 19% to 25%, so companies with profits between £50,000 and £250,000 pay an effective rate somewhere in between. It's calculated as 25% of profit, minus the marginal relief fraction (3/200) multiplied by the shortfall between £250,000 and the profit.
Do the thresholds change with associated companies?
Yes. The £50,000 and £250,000 thresholds are divided by the number of associated companies (companies under common control), including the company itself. This calculator assumes a single company with no associated companies.
When is corporation tax due?
Most companies must pay corporation tax nine months and one day after the end of their accounting period, and file the return within 12 months. Large companies with profits above £1.5 million usually pay in quarterly instalments instead.
How do you calculate corporation tax?
Multiply taxable profit by the applicable rate. Below £50,000, apply 19% directly. Above £250,000, apply 25% directly. In between, use the calculator above, or apply the marginal relief formula to the main rate.
People also ask
- Companies with taxable profits of £50,000 or less pay the small profits rate of 19%. Above that, marginal relief or the 25% main rate applies depending on profit level.
- Companies with taxable profits above £250,000 pay the full 25% main rate. Profits between £50,000 and £250,000 pay an effective rate between 19% and 25% because of marginal relief.
- Marginal relief is a reduction that tapers the corporation tax rate for profits between £50,000 and £250,000, so the rate rises gradually from 19% to 25% rather than jumping straight to the main rate.
- No. Corporation tax is paid by limited companies on their profits, while income tax is paid by individuals — including sole traders and partners — on their personal income.
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