Estimate your company tax bill
Corporation Tax Calculator
Taxable Profit
Small Profits Rate
Main Rate
Marginal Relief
Total Tax Payable
Limited companies pay Corporation Tax on what they earn during their financial year, minus any allowable expenses or tax relief. Your company will pay tax at a rate of 25% if your profits for the year are more than £250,000.
Companies with profits less than £50,000 pay a reduced rate of Corporation Tax at 19%. Somewhere in the middle? You’ll still pay the 25% main rate. Sorry. But a sliding scale of ‘marginal relief’ reduces the final amount you need to pay.
HMRC use the information in your Company Tax Return to calculate how much Corporation Tax your company owes. The deadline for paying your Corporation Tax bill is 9 months and 1 day after your year-end.
The deadline to submit your tax return is 12 months after the financial year ends. Yes, that’s later than the tax deadline. Yes, it sounds like a gameshow in a dream. Use our Corporation Tax liability calculator to see what your bill might look like.
CORPORATION TAX CALCULATOR
No, but you might receive a reminder to submit your tax return. You’ll need to keep really good records about your company’s finances, and use these to work out the total amount it makes in a financial year, how much it spent, and any allowances or tax relief you can claim.
Applying marginal relief gives companies a gradual increase in the tax rate they pay on company profits between the 19% small profits rate (below £50,000) and 25% (£250,000+). If your profits fall somewhere between the two thresholds, HMRC will automatically apply the relief and you’ll pay a proportional rate of tax somewhere between the two. Makes it a bit less scary.
Our free calculator will help you with a rough estimate of how much Corporation Tax your company will owe based on the figures you enter. Pandle users will see their tax liability update on their dashboard in real-time whenever they add or update information.
Good record-keeping is the key to everything! Companies pay tax on the amount left over once they deduct any allowable expenses (such as wages and National Insurance contributions) and claim any allowances or tax relief. Having clear records will help you make sure you claim everything you’re entitled to, and pay the right amount of tax.
You can normally pay your company’s Corporation Tax bill online, through a bank transfer, by setting up a Direct Debit, or over the phone. The time it takes for a payment to clear will depend on the method you use, so don’t leave it too late! HMRC won’t accept magic beans as payment. Not even if they grow into a giant beanstalk.
