Easily calculate your company's UK Corporation Tax liability. This tool applies the correct rates for the 2024/25 and 2025/26 financial years, including the small profits rate, main rate, and marginal relief.
Corporation Tax Due
£22,750.00
Profit After Tax
£77,250.00
Effective Tax Rate
22.75%
Marginal Relief Applied
£2,250.00
Marginal Tax Rate
25%
Corporation Tax is a direct tax imposed on the profits made by companies, public limited companies (PLCs), and certain other legal entities. In the UK, it is a significant source of government revenue and a key consideration for any business operating as a limited company. The amount of tax a company pays is calculated based on its annual taxable profits, which are the profits after subtracting allowable business expenses and capital allowances.
The UK tax system for corporations uses a tiered approach. For the financial year 2024/25, companies with profits of £50,000 or less pay tax at the 'small profits rate' of 19%. Companies with profits exceeding £250,000 pay the 'main rate' of 25%. This structure is designed to support smaller businesses while ensuring larger, more profitable companies contribute more. For help with other business taxes, our VAT calculator can be a useful tool.
A crucial feature of the system is 'Marginal Relief', which applies to companies with profits between £50,000 and £250,000. This mechanism smooths the transition between the small profits rate and the main rate, preventing a sudden tax cliff-edge. The relief is calculated using a specific formula that effectively creates a tapered tax rate across this profit band. This ensures a fair and gradual increase in the tax burden as profits grow, which you can see reflected in the 'effective tax rate' in this calculator.