UK Corporation Tax Calculator 2025
Calculate your business tax liability with HMRC’s latest rates
Your Corporation Tax Breakdown
Understanding UK Corporation Tax 2025
The UK Corporation Tax system has three main rates for the 2025/26 financial year:
Small Profits Rate
19% on profits up to £50,000
Ideal for small businesses and startups with lower profits.
Marginal Relief
Sliding scale between £50,001 – £250,000
Gradual increase from 19% to 25% for medium-sized companies.
Main Rate
25% on profits over £250,000
Applies to larger corporations with substantial profits.
How Marginal Relief Works
For profits between £50,000 and £250,000, your company gets Marginal Relief – a gradual increase in tax rate rather than a sudden jump. Our calculator automatically computes this complex calculation for you.
Why Use Our Calculator?
- ✅ 100% Accurate – Updated with 2025 HMRC tax bands
- ✅ Automatic Marginal Relief – No manual calculations needed
- ✅ Instant Results – Get your tax liability in seconds
- ✅ Printable Report – Save or share your calculations
- ✅ Mobile-Friendly – Works perfectly on all devices
Frequently Asked Questions
What counts as taxable profit?
Taxable profit includes all your company’s income minus allowable business expenses, capital allowances, and any other deductions you’re entitled to claim.
When is Corporation Tax due?
Corporation Tax is due 9 months and 1 day after the end of your accounting period. For example, if your accounting period ends 31 March 2025, your tax is due by 1 January 2026.
Can I reduce my Corporation Tax bill?
Yes! Consider these legal ways to reduce your tax:
- Claim all allowable business expenses
- Utilize capital allowances
- Make pension contributions
- Claim R&D tax credits if eligible
2025 Corporation Tax Planning Tips
Smart tax planning can save your business thousands:
1. Know Your Tax Bands
If your profit is near the £50,000 or £250,000 thresholds, consider timing expenses to stay in a lower tax band.
2. Maximize Allowable Deductions
Common overlooked deductions include:
- Home office costs
- Business mileage
- Professional subscriptions
- Training costs
3. Consider Incorporation
For sole traders earning over £50,000, incorporating could save tax but consider all implications.
Pro Tip: Use our calculator above to test different profit scenarios for optimal tax planning!
