Corporation Tax Calculator (UK 2026/27)
UK Corporation Tax uses a two-rate system: 19% for small profits up to £50,000 and 25% for profits over £250,000. Marginal relief applies in between, so your effective rate could be anywhere from 19% to 25%.
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Many company directors assume all profits are taxed at 25%, but the small profits rate means companies earning under £50,000 still pay just 19%. However, if you control multiple associated companies, the thresholds are divided between them — potentially increasing your effective rate.
Enter your turnover and expenses below to see exactly how much Corporation Tax your company will owe, what effective rate applies, and when payment is due. This calculator also accounts for associated companies and quarterly instalment requirements.
Company Details
Salaries, rent, utilities, professional fees, equipment, etc.
Companies you control – divides the profit thresholds
Corporation Tax Results
Corporation Tax Due
2026/27 rates
Profit After Tax
Available for dividends or reinvestment
Corporation Tax Rates (2026/27)
• Small profits (up to £50,000.00): 19%
• Main rate (over £250,000.00): 25%
• Marginal relief applies between thresholds
Payment Deadlines
• CT due: 9 months and 1 day after year end
• CT600 return: within 12 months of year end
How Corporation Tax Works in the UK
Corporation Tax is paid by UK limited companies on their taxable profits. Since April 2023, the rate you pay depends on how much profit your company makes. The small profits rate of 19% applies to companies earning up to £50,000, while the main rate of 25% applies to profits over £250,000.
Companies with profits between these thresholds benefit from marginal relief, which gradually increases the effective rate. This means a company earning £100,000 pays an effective rate of 22.75% (£22,750), not the full 25%.
If you control multiple associated companies, the thresholds are divided between them. Two associated companies would each have a small profits threshold of £25,000 instead of £50,000.
Reducing Your Corporation Tax Bill
The most common ways to reduce Corporation Tax include claiming all allowable business expenses, making employer pension contributions, using the Annual Investment Allowance (AIA) for capital expenditure, and timing income and expenses strategically around your year end.
R&D tax credits can provide significant relief for companies investing in innovation. The merged R&D expenditure credit scheme offers an above-the-line credit of 20% for qualifying expenditure incurred in accounting periods beginning on or after 1 April 2024, with loss-making R&D-intensive SMEs (30%+ of total expenditure on R&D) able to claim enhanced support worth up to 27% instead.
Sources
- GOV.UK — Corporation Tax rates and reliefs (19% small profits rate, 25% main rate, £50,000/£250,000 thresholds)
- GOV.UK — Marginal Relief for Corporation Tax (3/200 marginal relief fraction and associated company rules)
- GOV.UK — Paying Corporation Tax in instalments (£1.5m large and £20m very large company thresholds)
Frequently Asked Questions
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