Corporation Tax Calculator UK (2026/27)

Use our corporation tax calculator to estimate your tax liability based on your limited company’s net profit. Get a clear view of how much corporation tax your company may owe for the 2026/27 tax year.

What is Corporation Tax?

Corporation tax is a tax placed on the profits of a company. If you operate a limited company, whether in IT contracting or another industry, you are required to pay tax on your profits. The amount of corporation tax you owe depends on how much profit your company makes in a given period, typically the financial year.

For most businesses, the standard corporation tax rate applies. However, the UK tax system includes specific reliefs and lower rates for small businesses, which can significantly reduce the amount of tax owed. This is where our Corporation Tax Calculator comes in – it allows you to calculate your corporation tax quickly and understand how much tax your business needs to pay.

Who needs to pay Corporation Tax?

• Limited Companies (Ltd and PLC): All limited companies in the UK must pay corporation tax on their profits.
• Foreign Companies: Non-resident companies with UK operations (e.g., branches or offices) must pay tax on profits generated in the UK.
• Charities: Charities are exempt from tax on donations and charitable activities but may pay tax on income from non-charitable activities (e.g., trading or investments).
• LLPs: Limited Liability Partnerships (LLPs) are considered separate legal entities and must pay corporation tax on profits.
• Sole Traders and Partnerships: These businesses do not pay corporation tax. Instead, they pay income tax based on their profits.

When is Corporation Tax due?

• General Deadline: Corporation tax is due nine months and one day after the end of a company’s accounting period.
• Large Companies: Companies with profits over £1.5 million must pay corporation tax in quarterly instalments during the accounting period.
• Late Payment Penalties: Failure to pay on time can lead to penalties and interest charges.
• Tax Return Deadline: The tax return must be submitted within 12 months of the end of the accounting period.

Corporation Tax rates in the UK

Corporation tax in the UK is based on the profits your company earns. For the 2024/2025 tax year, the following rates apply:

• Small Profits Rate (19%): If your company makes profits under £50,000, you will pay tax at the reduced 19% rate.
• Main Rate (25%): This applies to businesses with profits over £250,000. If your company’s profits exceed this amount, the full 25% corporation tax rate applies.
• Marginal Relief: If your company’s profits are between £50,000 and £250,000, you will pay a blend of the small profits rate and the main rate. This is where marginal relief comes into play, which helps reduce the impact of the higher tax rate as your business’s profits increase.