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UK · 2025/26

Corporation Tax Calculator

Calculate corporation tax on company profits including marginal relief for profits between £50,000 and £250,000.

Last reviewed: 18 October 2025Source: HMRC — Corporation Tax ratesUpdated every: tax year
Corporation Tax Calculator · UKTax & Salary
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Corporation Tax Due

£17,450.00

Effective Rate

21.81%

Rates & sources2025/26

UK Corporation Tax. Main rate 25% from Apr 2023; 19% small-profits rate for profits under £50k.

Small-profits rate19% (profits ≤ £50,000)
Main rate25% (profits ≥ £250,000)
Marginal relief£50,001 – £250,000

Source: HMRC — Corporation Tax rates — figures refreshed at the start of each tax year.

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Full 2025/26 tax summary as a PDF

A personalised 4-page report with your band breakdown, NI, pension relief and sources — delivered to your inbox. No subscription.

When to use this calculator

  • Before accepting a pay change, bonus, pension contribution, or salary-sacrifice option.
  • When you want to compare employed, self-employed, or dividend-based income scenarios.
  • When you need a simple take-home estimate before running payroll or filing returns.
  • When you are approaching the £100,000 income level and want to understand the personal allowance taper effect.
  • When you are planning a salary sacrifice arrangement and need to see the net pay impact before agreeing terms.

Worked example: £100,000 taxable profits

Use these sample inputs as a quick scenario test, then change one variable at a time to compare outcomes.

Taxable profit

£100,000

£100,000 × 25%

£25,000

Less Marginal Relief: (£250,000 − £100,000) × 3/200

£2,250

Corporation tax due

£22,750

Effective rate

22.75%

Each extra £1 of profit between £50k–£250k costs 26.5p, not 25p — so timing investments to keep profits in the small-profits band can save real money.

How to read your results

Corporation Tax Due

Review this figure alongside your gross income so you can understand the true cost of deductions and plan around any thresholds before the tax year closes. If the figure looks higher than expected, check whether any pension or gift-aid contributions could reduce your taxable income.

Effective Rate

The effective rate lets you compare options on a true like-for-like basis rather than being misled by different compounding periods or fee structures. Use it to cut through headline marketing rates when shortlisting providers or products.

Method & assumptionsAuthoritative sources

This calculator applies the corporation tax rates and thresholds in force from April 2023 as set by HMRC. It uses the small profits rate for companies below the lower threshold, the main rate for those above the upper threshold, and applies the marginal relief formula for profits in between. The accounting period is assumed to be a standard 12-month period.

The calculator works from taxable profit, which is your accounting profit adjusted for disallowable expenses, capital allowances, and other tax-specific adjustments — it does not derive taxable profit from raw turnover or receipts. Associated company rules, which reduce the applicable thresholds where common control exists, are not modelled here. The calculator also excludes ring-fenced profits, close investment holding companies, and banking surcharge provisions. For accurate filing, always use figures prepared by a qualified accountant or the HMRC Corporation Tax online service.

Common mistakes

  • !Entering gross income when you really want take-home pay, or vice versa.
  • !Ignoring pension contributions, deductions, or local tax rules that change the result.
  • !Comparing monthly and annual figures without standardising them first.
  • !Overlooking the National Insurance threshold changes that apply mid-year when rates or bands are adjusted in a Budget.
  • !Assuming a salary sacrifice benefit reduces take-home pay by the full gross amount, rather than only the after-tax cost.

What to do next

  • Check the same scenario with related pay or deduction calculators to see the full picture.
  • Keep a copy of the assumptions you used so you can compare next tax year or pay period accurately.
  • Read the related guides below if you are choosing between multiple income or deduction options.
  • If you are self-employed, run the self-employment tax calculator alongside this result to compare the net position against employed income.
  • Check whether increasing your pension contribution by even one or two percent changes the take-home significantly — use the pension calculator next.

Go deeper — 2 guides reference this calculator

Frequently asked

From April 2023: 19% for profits up to £50,000, 25% for profits over £250,000, with marginal relief tapering between the two thresholds.

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