Corporation Tax Calculator UK
Estimate your limited company's Corporation Tax liability for the 2025/26 financial year.
Corporation Tax Calculator
Estimate your company's tax liability for 2025/26.
Based on the financial year starting April 2025.
Corporation Tax Estimate
An estimate of the tax owed on your profits.
Corporation Tax Due
£16,125.00
Taxable Profit
£75,000.00
Marginal Relief Claimed
£2,625.00
Effective Tax Rate
21.50%
Understanding Corporation Tax
Corporation Tax is a tax paid by UK limited companies and certain other organisations on their annual profits. Unlike income tax, it is not paid by sole traders, whose profits are assessed via our PAYE calculator.
Corporation Tax Rates (2025/26)
The rate you pay depends on your company's profits.
Small Profits Rate: 19%
This rate applies to companies with profits of £50,000 or less.
Main Rate: 25%
This is the standard rate for companies with profits over £250,000.
Marginal Relief
For profits between £50,000 and £250,000.
If your company's profits fall between £50,000 and £250,000, you can claim Marginal Relief. This provides a gradual increase in the effective Corporation Tax rate from 19% up to 25%.
Our calculator automatically applies this relief to give you an accurate tax estimate.
How is Profit Calculated?
Corporation Tax is paid on profits after deducting allowable expenses.
A company's taxable profit is its total income (from trading, investments, and selling assets) minus its operating costs. These costs must be 'wholly and exclusively' for business purposes.
Common allowable expenses include salaries, rent, utility bills, and marketing costs. You can also reduce your profit by claiming Capital Allowances on qualifying assets. For a detailed view of how this works in practice for a contractor, see our Outside IR35 contractor calculator.
The Journey from Revenue to Take-Home Pay
For a limited company director, getting paid involves several tax steps. Here's a typical flow.