Corporation Tax Calculator UK (2025/26 & 2026/27)

Nikunja Shah
Written & Reviewed by
MBA in Finance & HR, PGDBM, Xero Advisor Certified and ACCA Part-Qualified Accountant
Updated on
12 June 2026
Reading time
8 mins

Use our corporation tax calculator to estimate your tax liability based on your limited company’s taxable profit. Get a clear view of how much Corporation Tax your company may owe for the 2025/26 or 2026/27 tax year.

Prefer working offline? Download our free Excel version of this calculator and run your calculations anytime.

Corporation Tax Calculator

Estimate Corporation Tax due, marginal relief, adjusted thresholds, payment timing and a sensible monthly tax reserve for your limited company. 2025/26 is included for prior-year planning because the core non-ring fence rates remain the same.

Small profits rate 19%
Main rate 25%
Marginal relief band £50k - £250k

Enter company figures

Use taxable profit after allowable expenses. Leave advanced fields as £0 or blank where they do not apply.

No personal data needed
2025/26 and 2026/27 currently use the same core non-ring fence Corporation Tax rates.
£
Profit after allowable business expenses and adjustments, before Corporation Tax.
£
Usually £0 for contractors. Used only where augmented profits differ from taxable profits.
Use 1 if your company has no associated companies.
Optional. Used to adjust thresholds for short accounting periods.
Optional. Used to estimate your Corporation Tax payment deadline.
Important: This is an estimate for standard UK limited companies. It does not cover ring fence profits, complex reliefs, R&D claims, group relief, losses carried forward, quarterly instalment calculations, or specialist tax adjustments.

Corporation Tax Calculation Results

Taxable Profit: £0

Tax Year: 2026/27

Augmented Profits Used: £0

Adjusted Small Profits Limit: £50,000

Adjusted Main Rate Limit: £250,000

Tax Band: -

Corporation Tax Before Relief: £0

Marginal Relief Reduction: £0

Corporation Tax Due: £0

Profit After Corporation Tax: £0

Effective Corporation Tax Rate: 0%

Estimated Payment Due Date: Not entered

Payment Basis: Standard

Suggested Monthly Tax Reserve: £0

Enter your figures and calculate to see your Corporation Tax estimate.

Calculation Assumptions

These assumptions explain how this Corporation Tax estimate has been calculated.

2026/27

Tax rates used

The calculator uses the standard UK Corporation Tax small profits rate of 19% and main rate of 25%.

Profit limits

The standard limits are £50,000 for the small profits rate and £250,000 for the main rate. These limits may be reduced where the company has associated companies or a short accounting period.

Associated companies

The associated-company field is treated as the total number of companies sharing the Corporation Tax limits, including the company being calculated.

Marginal relief

Where profits fall between the adjusted lower and upper limits, the calculator applies marginal relief using the standard 3/200ths fraction.

Dividends and augmented profits

Where non-group dividend income is entered, it is used for marginal relief and threshold testing. Corporation Tax itself is still estimated on taxable profits.

Payment date

If an accounting period end date is entered, the estimated payment date is calculated as 9 months and 1 day after the end of the accounting period.

Tax reserve planning

The monthly reserve figure is a planning estimate only. It spreads the estimated tax due across the available months until the expected payment deadline.

Not included

This estimate does not include R&D relief, losses, capital allowance adjustments, group relief, ring fence profits, overseas tax, specialist reliefs, or accountant-specific year-end adjustments.

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 company’s taxable profits. The amount of Corporation Tax you owe depends on how much profit your company makes in a given accounting period.

For most businesses, the standard Corporation Tax rules apply. However, the UK tax system includes a small profits rate, a main rate and marginal relief for companies with profits between the lower and upper limits. This is where our Corporation Tax Calculator helps — it allows you to estimate your Corporation Tax quickly and understand how much your company may need to pay.

Who needs to pay Corporation Tax?

  • Limited Companies (Ltd and PLC): UK limited companies usually pay Corporation Tax on their taxable profits.
  • Foreign Companies: Non-resident companies with UK operations, such as branches or offices, may need to pay UK Corporation Tax on profits generated in the UK.
  • Charities: Charities are usually exempt from tax on donations and charitable activities but may pay tax on income from non-charitable trading or investments.
  • LLPs: LLPs are generally taxed differently from limited companies. However, corporate members or specific structures may have Corporation Tax considerations.
  • Sole Traders and Partnerships: These businesses do not usually pay Corporation Tax. Instead, the individuals involved normally pay Income Tax and National Insurance on their profits.

When is Corporation Tax due?

  • General Deadline: Corporation Tax is usually due nine months and one day after the end of a company’s accounting period.
  • Large Companies: Companies with significantly higher profits may need to pay Corporation Tax in quarterly instalments.
  • Late Payment Penalties: Failure to pay on time can lead to interest charges and potential penalties.
  • Tax Return Deadline: The Company Tax Return is normally 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 taxable profits your company earns. For the 2025/26 and 2026/27 tax years, the following rates apply:

  • Small Profits Rate (19%): If your company’s profits are below the lower limit, you may pay Corporation Tax at the reduced 19% rate.
  • Main Rate (25%): If your company’s profits exceed the upper limit, the 25% Corporation Tax rate normally applies.
  • Marginal Relief: If your company’s profits fall between the lower and upper limits, marginal relief can reduce the impact of the main rate and create a gradual increase in the effective tax rate.
  • Associated Companies: If your company has associated companies, the lower and upper limits may be divided by the number of associated companies.
  • Short Accounting Periods: If your accounting period is shorter than 12 months, the limits may need to be reduced proportionately.

Frequently Asked Questions

This calculator gives a reliable estimate based on current UK Corporation Tax rates, including marginal relief. It is ideal for planning and decision-making, but your final liability may differ depending on allowances, timing, losses, reliefs, investment income, associated companies and your accountant’s adjustments.

Yes. If your profits fall between the relevant lower and upper limits, marginal relief is automatically applied. The calculator can also adjust the limits for associated companies and short accounting periods where you enter the relevant details.

You should deduct allowable business expenses first. This may include software, subscriptions, equipment, insurance, accountancy fees, travel, training and relevant home office costs. Entering taxable profit after expenses gives a more accurate tax estimate.

Leaving profits in your company can delay personal tax such as dividend tax if you do not need the funds immediately. However, this should be considered alongside cashflow, pension planning, future income needs and your wider tax position.

You may be able to reduce Corporation Tax by claiming all allowable expenses, making employer pension contributions, using capital allowances, planning the timing of income and purchases, and reviewing available reliefs with your accountant.

Corporation Tax is typically due nine months and one day after the end of your company’s accounting period. If your company is large or very large for Corporation Tax purposes, instalment payment rules may apply instead.

Calculations Reviewed by ✔ Verified
Xero Advisor Certified | ACCA Part-Qualified Accountant

Calculations on this page have been reviewed and verified to ensure accuracy and alignment with current UK Corporation Tax rules for 2025/26 and 2026/27.

Last reviewed: June 2026
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