UK Limited Company Corporation Tax Calculator
Work out your corporation tax based on company profits generated during the 2024/25 tax year
In the UK, corporation tax is straightforward but essential to understand. Companies must calculate their taxable profits, which include trading profits, investment profits, and any capital gains. Once the taxable profit is determined, companies apply the current corporation tax rate to find out how much they owe.
Know how much corporation tax you owe in the financial year 2024/25 easily with our easy to use Corporation Tax Calculator. Using our calculator is straightforward and user-friendly. Just select your company’s gross profit, and the calculator does the rest. It applies the current corporation tax rates for 2024/25 and provides an accurate estimate of what you owe. This ensures you stay compliant with UK tax laws without the hassle of manual calculations.
What is Corporation Tax?
Corporation tax is a tax that limited companies and organizations in the UK must pay on their profits. This includes profits from doing business (trading profits), investments, and selling assets for more than they cost (chargeable gains). If your business makes a profit, you need to pay corporation tax.
The corporation tax main rate is 25% on all taxable profits.
Who Needs to Pay Corporation Tax?
Any company that is based in the UK or has a branch in the UK needs to pay corporation tax on their taxable profits. This includes:
- Limited companies
- Foreign companies with a UK branch or office
- Clubs, co-operatives, and other unincorporated associations like sports clubs and community groups
Corporation Tax Rate 2024/25
The corporation tax rate is the percentage of profits that a company is required to pay in taxes to the UK government. The main rate of corporation tax is 25% which applies to company profits over a threshold of £250,000. Corporation tax is calculated on the profits a company earns during its accounting period. These profits include income from various sources, such as trading profits, investment income, and chargeable gains. The corporation tax payment is due in nine months and one day after the end of the company's accounting period.
How to Use Our Corporation Tax Calculator
Our Corporation Tax Calculator is designed to be simple and straightforward. Follow these steps to estimate your tax liability:
1. Select Your Gross Profit:
Drag the slider to match your total gross profit for the financial year 2024/25. This is the money your business has earned before any expenses are deducted. It includes all your limited company expenses, cost of depreciation value of your assets. This can include equipment, machinery, and other significant investments.
2. Automated Calculation:
As you adjust the gross profit amount, the calculator will instantly show the corporation tax you owe for 2024/25.
Features of Our Corporation Tax Calculator
- Accurate and Up-to-Date with 2024/25 Tax Rates: We use the latest corporation tax rates for 2024/25 to ensure your calculations are precise and updated.
- Customizable Inputs: Input your business specific data to calculate personalized corporation tax you owe.
- Easy-to-Use Interface: Our calculator has a user-friendly design, making it simple for anyone to use, regardless of their accounting knowledge.
- Secure and Confidential: Your financial data is secure with our robust encryption protocols.
- Free to Use: Access all features without any cost.
Why Use Our Limited Company Tax Calculator?
Our Limited Company Tax Calculator offers several advantages:
- Accurate Tax Calculation: Our calculator uses the latest tax rates and regulations to provide accurate results.
- Instant Results: Get your tax liability calculated in seconds. No more waiting or complex computations.
- Save Time and Reduce Errors: Quickly calculate your tax liability without spending hours on complex calculations. Our tool minimizes the risk of errors, giving you accurate results every time.
- Plan Your Finances Effectively: By knowing your tax obligations in advance, you can plan your finances better. This helps you make informed decisions about spending, investments, and savings.
- Regular Updates to Reflect Any Tax Law Changes: Our limited company accountants update the Corporation Tax Calculator on regular basis to reflect the latest tax laws and rates. You can be confident that you’re always using the most current information when calculating your tax.
Responsibilities of Company Directors After Calculating Corporation Tax
1. File Accurate Corporation Tax Returns
As a company director, you must file corporation tax return (CT600) with HMRC. This form includes details about your company’s income, expenses, and calculated tax liability. You must file the return within 12 months of the end of your company’s accounting period.
2. Corporation Tax Payment
After filing your corporation tax return, you are required to make the payment to HMRC for the calculated corporation tax liability. Corporation Tax is typically due nine months and one day after the end of your company's accounting period.
3. Keeping Accurate Records
As a director, you must keep records of all income, expenses, and calculations used to determine your corporation tax. These records should be kept for at least six years from the end of the accounting period they relate to.
Ready to simplify your corporation tax calculations? Try our Corporation Tax Calculator today!
If you need any further assistance or personalised tax advice, don’t hesitate to contact our limited company accountants. Our team of experts is here to help you handle the complexities of corporation tax with ease.
Stay informed, stay compliant, and simplify your tax calculations with our Corporation Tax Calculator!
Frequently Asked Questions
What is Corporation Tax?
Corporation Tax is a tax on the profits made by UK limited companies and other corporate bodies. It applies to trading profits, investment income, and capital gains.
Who has to pay Corporation Tax?
All UK limited companies must pay Corporation Tax on their taxable profits. This also applies to foreign companies with a UK branch or office, and some unincorporated associations.
What is the current Corporation Tax rate?
The main rate is 25% for companies with profits over £250,000.
Smaller companies with profits of £50,000 or less pay the small profits rate of 19%.
Companies with profits between £50,001 and £250,000 pay a marginal rate.
When do I need to pay Corporation Tax?
Corporation Tax must be paid within 9 months and 1 day after the end of your accounting period. For example, if your year-end is 31 March, the tax is due by 1 January the following year.
When do I need to file my Corporation Tax return?
You must file your Corporation Tax return (CT600) within 12 months after the end of your accounting period. It must be submitted online using iXBRL format.
What happens if I file or pay late?
HMRC charges penalties for late filing and interest on late payments. Penalties start at £100 and increase with further delays or repeated offences.
How do I register for Corporation Tax?
You need to register with HMRC within 3 months of starting to trade or becoming active. This is usually done online after your company is formed with Companies House.
What expenses can I deduct from my profits?
You can deduct most business-related expenses, including:
- Staff wages
- Office rent and utilities
- Equipment and software
- Professional fees (like accountancy)
- Travel and subsistence
Expenses must be "wholly and exclusively" for business purposes.
Can I carry forward losses?
Yes. If your company makes a loss, it can usually be carried forward to offset against future profits, or in some cases carried back to reclaim tax already paid.
Do I need an accountant to handle Corporation Tax?
It’s not a legal requirement, but most businesses use an accountant to ensure compliance, optimise tax efficiency, and avoid costly mistakes.
What is a CT600?
The CT600 is the Corporation Tax return form submitted to HMRC. It details your company’s income, expenses, profits, and tax due for the accounting period.
How can I reduce my Corporation Tax bill legally?
Tax planning strategies include:
- Claiming all allowable expenses
- Using the Annual Investment Allowance (AIA)
- Claiming R&D Tax Credits (if applicable)
- Making pension contributions
- Timing income and costs strategically
An accountant can advise on the best options for your business.
