Calculate your limited company's corporation tax bill. Covers the small profits rate (19%), main rate (25%) and marginal relief for profits between £50,000 and £250,000.
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Corporation tax is paid by UK limited companies on their taxable profits. Since April 2023 there are two rates depending on the level of profit, with marginal relief available for profits between the two thresholds.
Applies to companies with taxable profits of £50,000 or less. This is the same rate that applied to all companies before April 2023.
Applies to companies with taxable profits of £250,000 or more.
Companies with profits between £50,000 and £250,000 pay the main rate of 25% but receive marginal relief which reduces the effective tax rate. The marginal relief fraction is 3/200 of the difference between the upper limit and the profit.
This means the effective tax rate gradually increases from 19% at £50,000 to 25% at £250,000.
If you have associated companies the £50,000 and £250,000 thresholds are divided by the number of associated companies including your own. For example with 2 associated companies the small profits threshold becomes £25,000 and the upper threshold becomes £125,000.
For most small companies corporation tax is due 9 months and 1 day after the end of your accounting period. Your company tax return (CT600) must be filed within 12 months of the end of your accounting period.
Dividends paid to shareholders are not deductible — they are paid from post-tax profits.
Employer pension contributions made by your company are fully deductible against corporation tax. Use our Pension Contribution Calculator to explore this further.
Use our Sole Trader vs Ltd Company Calculator for a full side-by-side comparison of take-home pay under both structures.