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Corporation tax calculator

How much corporation tax will your UK company pay? Enter the year's taxable profit to see the tax at 19%, 25% or with marginal relief in between, your real rate, what each extra £1,000 of profit costs, and how much to put aside each month.

Free, no sign-up, no Xero needed. Everything is worked out in your browser and nothing is saved or sent, unless you ask us to email you the result.

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The company's year

Net profit before tax, plus depreciation and entertaining, less capital allowances. A loss: start with a minus sign.

Leave blank for a full year. A first period can be shorter.

Other companies under the same control, not counting this one.

Commas and £ signs are ignored. Rates for periods from 1 April 2023, unchanged for 2026/27.

Corporation tax for the period

Enter the company's taxable profit.

How the calculator works

  • Profits up to £50,000: 19%, the small profits rate.
  • Profits of £250,000 or more: 25%, the main rate, on all of it.
  • In between: 25% of the profit, less marginal relief of 3/200 × (£250,000 − profit). The profit above £50,000 is in effect taxed at 26.5%.
  • Associated companies: both limits are divided by the number of associated companies plus one.
  • A short period: both limits are scaled down. HMRC does it by days; the calculator uses months, which is within a few pounds.

It assumes your augmented profits equal your taxable profits, which is true unless the company received dividends from companies outside its group. HMRC's own marginal relief calculator on GOV.UK handles that case.

A worked example

A joinery company in Bristol, one director, no other companies, year to 31 March 2026. Made-up figures.

  • Net profit in Xero before tax: £96,000.
  • Add back £10,000 of depreciation and £4,000 of client entertaining, which the tax rules do not allow.
  • Take off £10,000 of capital allowances on a van bought in the year (the annual investment allowance).
  • Taxable profit: £96,000 + £14,000 − £10,000 = £100,000.
  • Tax at 25%: £25,000. Marginal relief: 3/200 × (£250,000 − £100,000) = £2,250.
  • Corporation tax: £25,000 − £2,250 = £22,750, an effective rate of 22.75%. Due on 1 January 2027.
  • Put aside: £22,750 ÷ 12 = £1,895.83 a month, from the first month of the year.

If the company had paid a £10,000 employer pension contribution for the director before the year end, taxable profit would be £90,000 and the tax £20,100: £2,650 less, because that £10,000 sat in the 26.5% band. Press "Load the worked example" above to see the Bristol figures in the calculator.

From Xero to taxable profit

  1. Run Accounting › Reports › Profit and Loss for the company's accounting period and take Net Profit. If a corporation tax line has already been posted as an expense, use the figure before it. Profit before tax explains the difference.
  2. Add back depreciation (it is replaced by capital allowances), client entertaining and fines or penalties.
  3. Take off capital allowances. For most small companies the annual investment allowance covers equipment, tools and vans bought in the year, up to £1 million. Cars are treated differently.
  4. For a figure part-way through the year, use year-to-date net profit and scale it up, or run the year-to-date profit and loss against last year's.

Your accountant makes the final adjustments on the Company Tax Return, so treat the result as the amount to put aside, not the bill. How much to set aside for tax covers VAT and PAYE alongside it, and how much can I pay myself takes the tax pot off before salary and dividends. Nine months and one day after the year end, the usual due date, is also the deadline for repaying an overdrawn director's loan account before the company owes s455 tax on it. If the money is not there when the bill arrives, see what to do if you can't pay a tax bill on time.

Questions

How much corporation tax will I pay on £100,000 profit?
£22,750 for a 12-month period with no associated companies. Tax at 25% is £25,000, less marginal relief of 3/200 × (£250,000 − £100,000) = £2,250. That is an effective rate of 22.75%.
What are the UK corporation tax rates?
19% (the small profits rate) on profits up to £50,000, 25% (the main rate) on profits of £250,000 or more, and 25% less marginal relief in between. These rates have applied since 1 April 2023 and are unchanged for the financial year starting 1 April 2026.
How is marginal relief worked out?
Work out tax at 25% on all the profit, then take off 3/200 × (£250,000 − profits). The effect is that the profit between £50,000 and £250,000 is taxed at 26.5%, so the average rate rises smoothly from 19% to 25%.
What counts as an associated company?
Another company that controls yours, that yours controls, or that is under the control of the same person or group, at any time in the accounting period. Companies that have not traded in the period are left out. The £50,000 and £250,000 limits are divided by the number of associated companies plus one, so two companies owned by the same person get £25,000 and £125,000 each.
When is corporation tax due?
For most small companies, 9 months and 1 day after the end of the accounting period: a year to 31 March is due on 1 January. The Company Tax Return is due 12 months after the period ends. Companies with profits over £1.5 million pay in quarterly instalments instead.
Do dividends reduce corporation tax?
No. Dividends are paid out of profit after corporation tax. A director's salary and employer pension contributions are costs of the company, so they usually do reduce the profit that is taxed.
Is the net profit in Xero my taxable profit?
Not quite. Start from net profit before tax on the Profit and Loss, add back costs the tax rules do not allow (depreciation, client entertainment, most fines) and take off capital allowances on equipment and vans bought in the year. If your accountant has posted corporation tax as an expense line, use the figure before it.
What about company tax in Australia or New Zealand?
This calculator is for UK corporation tax only. Australian companies pay 25% if they are a base rate entity (turnover under $50 million and no more than 80% passive income) and 30% otherwise. New Zealand companies pay a flat 28%.
Are my figures stored or sent anywhere?
No. The calculation runs in your browser. Nothing you type is saved or sent to our server or anyone else. The only exception is if you ask us to email you the result: then your email address and a short summary of the result are stored, and nothing is sent until you confirm.

This calculator gives an estimate from the figures you enter, at the UK rates for periods from 1 April 2023. It is not tax advice; your accountant works out the final figure. Xero is a trademark of Xero Limited. This tool and ReportPilot are independent and are not made or endorsed by Xero.