Corporation Tax Calculator UK 2024/25
Calculate your company's corporation tax liability with our free calculator. Includes marginal relief calculations and adjustments for associated companies.
Corporation Tax Calculator 2024/25
Current UK Corporation Tax Rates (from 1 April 2023):
- 19% on profits up to £50,000 (small profits rate)
- 25% on profits over £250,000 (main rate)
- Marginal relief applies between £50,000 and £250,000
- Rates are adjusted for associated companies
Important Notes:
- This calculator provides estimates based on 2024/25 tax rates
- Actual tax may vary based on specific circumstances
- Consider quarterly instalment payments if profits exceed £1.5m
- Consult with a qualified accountant for accurate tax planning
Understanding UK Corporation Tax
Current Tax Rates
- •Small profits rate (19%): For profits up to £50,000
- •Main rate (25%): For profits over £250,000
- •Marginal rate: Tapered relief between £50,000 and £250,000
Key Deadlines
- •9 months and 1 day: Payment deadline after accounting period end
- •12 months: Filing deadline for CT600 return
- •Quarterly instalments: For large companies (profits >£1.5m)
Associated Companies Rules
The corporation tax thresholds are divided by the number of associated companies plus one. Companies are associated if they're under common control. This means:
- With 1 associated company, the lower limit becomes £25,000
- With 4 associated companies, the lower limit becomes £10,000
- The upper limit is similarly reduced
Marginal Relief Explained
Marginal relief ensures a smooth transition between tax rates. Without it, earning £1 over £50,000 would result in a significant tax increase. The relief gradually reduces as profits approach £250,000.
Tax Planning Opportunities
- Pension contributions to reduce taxable profits
- Capital allowances on qualifying expenditure
- R&D tax credits for innovation activities
- Group relief for companies with losses
- Patent box regime for qualifying IP income
Frequently Asked Questions
What counts as taxable profit?
Taxable profit is your company's total income minus allowable expenses, capital allowances, and any available reliefs. It's calculated based on your company accounts with adjustments for tax purposes.
When do I need to pay corporation tax?
Corporation tax is due 9 months and 1 day after your accounting period ends. For example, if your year end is 31 March, payment is due by 1 January. Large companies may need to pay in quarterly instalments.
What are associated companies?
Associated companies are those under common control. This typically means companies where the same person or group owns more than 50% of shares. Dormant companies and certain holding companies may be excluded.
Can I reduce my corporation tax bill?
Yes, through legitimate tax planning including claiming all allowable expenses, capital allowances, R&D tax credits, pension contributions, and ensuring your business structure is tax-efficient. Professional advice is recommended.
Need Help with Corporation Tax?
Our expert accountants can help you minimise your corporation tax liability through strategic planning and ensure you meet all compliance requirements.