Rates
Profits up to £50,000 are taxed at the small profits rate of 19%. Profits over £250,000 pay the main rate of 25%. In between, the company pays the main rate less marginal relief, which works out at an effective rate that rises gradually from 19% to 25%.
| Taxable profit | Rate |
|---|---|
| Up to £50,000 | 19% |
| £50,001 to £250,000 | 25% less marginal relief |
| Over £250,000 | 25% |
Example
A company with £100,000 of profit pays 25% (£25,000) less marginal relief of 3/200 × (£250,000 − £100,000) = £2,250. The bill is £22,750, an effective rate of 22.75%.
Associated companies and short periods
The £50,000 and £250,000 limits are divided by the number of associated companies and reduced for accounting periods shorter than 12 months.
Paying and filing
Most companies pay Corporation Tax nine months and one day after their accounting period ends, and file a CT600 return within 12 months. Large companies pay in quarterly instalments.
Corporation Tax and VAT
VAT is a separate tax with its own registration. A company must register once taxable turnover passes £90,000 in a rolling 12 months. VAT you charge customers isn't company income, so profit for Corporation Tax is worked out on figures excluding VAT if you're registered.
Our VAT calculator adds or removes VAT, checks the registration threshold and compares the Flat Rate Scheme with standard returns.
Post-tax profit still belongs to the company
The company result does not show an owner's personal take-home pay. Assess any intended withdrawal separately rather than treating the remaining company profit as a personal bank balance.
Try it with your own numbers
Calculate UK Corporation Tax at 19% or 25% with marginal relief for profits between £50,000 and £250,000.
Frequently asked questions
Do I include VAT in my company's profit?
Not if the company is VAT-registered. Sales and costs are recorded excluding VAT. If you're not registered, the VAT you pay on costs is part of the cost.
Check it on GOV.UK: Corporation Tax rates and reliefs (opens GOV.UK in a new tab)
When is Corporation Tax due?
Usually nine months and one day after the end of the accounting period, unless the company is large and pays by instalments.
Check it on GOV.UK: Corporation Tax rates and reliefs (opens GOV.UK in a new tab)
Sources
Tax year 2026/27. Check these official sources for current rules and deadlines.
Related calculators
- Corporation Tax Calculator — Calculate UK Corporation Tax at 19% or 25% with marginal relief for profits between £50,000 and £250,000.
- VAT Calculator — Add or remove UK VAT at 20%, 5% or 0%, check your turnover against the £90,000 registration threshold, and compare the Flat Rate Scheme with standard VAT accounting.
- Dividend Tax Calculator — Calculate UK dividend tax for 2026/27 using the new rates of 10.
Related guides
- VAT Explained: Rates, Registration and the Flat Rate Scheme — A plain-English guide to UK VAT: the three rates, when you must register, how to add and remove VAT, and whether the Flat Rate Scheme suits you.
- Dividend Tax Explained — How dividends are taxed in 2026/27 after the rates rose to 10.
- IR35 Explained — What IR35 is, who decides your status, how inside-IR35 contracts are taxed and what it means for your take-home pay.