Enter company profit before director salary to see the corporation tax charge, marginal relief (if applicable) and how much cash remains after tax to distribute or retain.
Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.
Calculate company tax Read the guidesCalculate corporation tax 2026/27: 19% on profits up to £50,000, 25% above £250,000, marginal relief between. Enter profit after salary to see your exact bill.
Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.
Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.
This calculator estimates the corporation tax a limited company owes on its taxable profit for the 2026/27 year. It applies the small profits rate of 19% on profits up to £50,000 and the main rate of 25% on profits above £250,000. Between those two thresholds the company pays the main 25% rate but receives marginal relief, which produces an effective marginal rate of 26.5% on the slice of profit sitting inside the £50,000–£250,000 band.12
Taxable profit is not the same as turnover. Allowable costs, director salary and employer pension contributions are deducted before tax is worked out, so a higher salary or pension top-up reduces the profit figure the calculator taxes. The result shown is the company's tax bill, not the amount you personally take home.
Corporation tax for a normal 12-month accounting period is due nine months and one day after the end of the company's financial year, and the CT600 return is filed within twelve months. Reading the result alongside your year-end date tells you both what is owed and roughly when it must be paid.
The marginal relief formula is where the 19%–25% transition actually happens. HMRC charges the full 25% main rate, then subtracts relief of 3/200 of the gap between profit and £250,000. On £100,000 of taxable profit the arithmetic is:
In a real company a £12,570 director salary plus £1,135.50 employer NI is deducted first, cutting taxable profit to £86,294.50 and the bill to £19,118.04 (an effective 22.15%). Because the marginal rate inside the band is about 26.5%, a pension contribution here saves more tax than at either the 19% or 25% end.
The rates and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC, GOV.UK or Companies House page in a new tab.
A limited company must keep its finances separate from personal accounts. These accounts are free to open.
Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day digital registration is £156. You can register directly at gov.uk or through a formation agent.