Updated for 2026/27

Corporation tax calculator 2026/27

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.

Calculator checked against GOV.UK and HMRC rules on (how we check).

Calculate company tax Read the guides
19% or 25% rateMarginal reliefPost-tax profitSalary impact
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,749 personal take-home / year £3,979/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,979
Total tax
£18,450
Effective rate
24.6%
Personal take-home£47,749
Dividend tax£4,821
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,821.25
Retained company cash£8,801.46
Personal take-home£47,748.75
Effective tax rate24.60%
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HMRC 2026/27 · Methodology
Quick answer

For 2026/27 a company pays 19% on taxable profit up to £50,000 and 25% from £250,000. In between it pays 25% less marginal relief: £180,000 of profit pays £43,950.00, an effective 24.42%.

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. Source: GOV.UK.

About this calculator

Corporation tax calculator 2026/27: what it covers

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.

Worked example

Marginal relief on £100,000 of taxable profit

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:

Taxable profit £100,000
Main rate charge (25%) £25,000
Less marginal relief (3/200 × £150,000) −£2,250
Corporation tax due £22,750
Effective rate 22.75%
Marginal rate on the next £1 of profit ≈26.5%

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.

How it works

How Corporation Tax is worked out

  1. Find taxable profit: accounting profit, with costs that are not allowable (client entertaining, depreciation, fines) added back and capital allowances deducted. Director salary, employer NI and employer pension contributions are allowable.
  2. If taxable profit is £50,000 or less, the tax is 19% of it. If it is £250,000 or more, the tax is 25% of it.1
  3. Between the two, charge 25% and subtract marginal relief of 3/200 of the gap between £250,000 and the profit. That gives an effective rate between 19% and 25%, and about 26.5% on each extra pound inside the band.2
  4. Divide both limits by the number of associated companies plus one, and reduce them in proportion for an accounting period shorter than 12 months.2
  5. Pay nine months and one day after the end of the accounting period, and file the CT600 return within 12 months.34
More worked examples

Under the small profits limit: £40,000

A company with £40,000 of taxable profit after paying its director.

Taxable profit £40,000
Rate 19% on all of it
Corporation Tax £7,600.00

There is no marginal relief to work out below £50,000. The whole profit is taxed at the small profits rate.

Inside the marginal relief band: £180,000

The formula HMRC uses, step by step.

Main rate charge (25%) £45,000.00
Marginal relief: 3/200 × (£250,000 − £180,000) −£1,050.00
Corporation Tax £43,950.00
Effective rate 24.42%

The same answer comes from HMRC's own marginal relief calculator on GOV.UK, which is a quick way to check a year-end figure.

The same profit with one associated company

£120,000 of taxable profit, but the owner also controls a second trading company. With one associated company the limits halve to £25,000 and £125,000.

Corporation Tax with no associated company £28,050.00
Limits with one associated company £25,000 / £125,000
Corporation Tax with one associated company £29,925.00
Extra tax £1,875.00

The second company's own profit does not matter for this test, only that it is associated. A dormant company does not count. Our calculator uses the full limits, so adjust by hand if you have associates.

Mistakes and edge cases

Where Corporation Tax estimates go wrong

Using profit before the director's pay
Salary, employer NI and employer pension contributions come off first. On a typical £12,570 salary that is £13,705.50 less profit to tax.
Reading 26.5% as the company's rate
26.5% applies only to the slice of profit inside the £50,000–£250,000 band. The effective rate on the whole profit is always between 19% and 25%.
Paying late because the return is not due
The tax is due nine months and a day after the year end, three months before the CT600 deadline. Interest runs from the payment date.
Forgetting a short first period
A company's first accounts can cover more than 12 months, but a tax period cannot. A longer first period is split into two tax periods, each with its own limits.
Big profits
A company with taxable profits over £1.5 million (shared between associated companies) generally pays in quarterly instalments instead of one payment.5
Common questions

Corporation tax calculator 2026/27 — FAQs

How does marginal relief work between £50,000 and £250,000?
Profits in this band are charged at the 25% main rate and then reduced by marginal relief, which tapers the benefit of the lower rate away as profit rises. The practical effect is that each extra pound of profit in the band is taxed at an effective marginal rate of 26.5%, higher than both the 19% and 25% headline rates.
Do associated companies change my corporation tax thresholds?
Yes. The £50,000 and £250,000 limits are divided by the number of associated companies plus one. If you control two associated companies, for example, each has thresholds of £25,000 and £125,000, so the small profits rate applies to a smaller amount of profit and marginal relief starts sooner.
When is corporation tax actually due?
For a standard 12-month accounting period, payment is due nine months and one day after your financial year-end. The company tax return (CT600) itself is filed later, within twelve months of the year-end, so the payment deadline usually arrives before the filing deadline.
Can salary or pension contributions reduce the bill?
Yes. A director's salary and employer pension contributions are allowable business expenses, so they lower taxable profit before corporation tax is calculated. Increasing either reduces the profit the calculator taxes, though salary also brings employer National Insurance into play at 15% above the £5,000 secondary threshold.
Sources & references

Where these figures come from

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.

  1. Corporation Tax rates and reliefs www.gov.uk/corporation-tax-rates
  2. Marginal Relief for Corporation Tax calculator www.gov.uk/marginal-relief-calculator
  3. Pay your Corporation Tax bill www.gov.uk/pay-corporation-tax
  4. Company Tax Returns www.gov.uk/company-tax-returns
  5. Corporation Tax: paying in instalments www.gov.uk/guidance/corporation-tax-paying-in-instalments
Verified against published UK government guidance.
Power tools

More calculators

Limited company tax calculator
Company profit to take-home: Corporation Tax, employer NI, salary and dividend tax in one view.
Salary vs dividend calculator 2026/27
Compare taking money as salary or dividends and see which salary leaves you the most.
Director salary calculator 2026/27
£0, £5,000, £9,100 or £12,570: what each salary costs the company and saves you.
Dividend tax calculator 2026/27
Dividend tax on top of your salary, band by band, after the £500 allowance.
Available dividends calculator
How much the company can lawfully pay out after salary, pension and Corporation Tax.
Retained profit calculator 2026/27
What stays in the company when you take less than all the profit, and the tax that defers.
Director take-home pay calculator 2026/27
What reaches your bank account each year and month, and what to set aside for January.
Employer NI calculator for directors 2026/27
Employer NI on a director's salary, and when Employment Allowance cancels it.
Practical guides

Limited company guides

Limited Company Tax in Scotland 2026/27: Salary, Dividends and Corporation Tax
In Scotland, corporation tax is the same 19%–25% as the rest of the UK and dividends are taxed at the UK rates of 10.75%, 35.75% and 39.35%. Only a director's salary uses Scottish income tax bands. 2026/27 examples.
Corporation Tax Rates 2026/27: 19%, 25% and Marginal Relief
Corporation tax rates 2026/27: 19% on profits up to £50,000, 25% over £250,000, marginal relief between (26.5% marginal rate). £100,000 profit pays £22,750. Table and examples.
Optimal Salary and Dividend Split for Directors 2026/27
How to calculate the tax-efficient salary and dividend combination for a limited company director in 2026/27, covering corporation tax, income tax, NI and the dividend allowance.
Salary vs Dividends 2026/27: The Optimal Split for Company Directors
The tax-efficient salary vs dividends split for UK company directors in 2026/27: a £12,570 salary, then dividends taxed at 10.75%. Corporation tax, the £500 dividend allowance, employer NI and a full worked example extracting £50,000.
Director's Loan Account 2026/27: s455 at 35.75%, 30-Day Rule
Overdrawn director's loan account in 2026/27: s455 at 35.75% if not repaid 9 months and 1 day after year end, refundable later; £10,000 benefit-in-kind limit; 30-day rule.
Limited Company Allowable Expenses: A Practical Guide 2026/27
What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - eligible deposits are FSCS protected up to £120,000 per eligible depositor, per authorised bank (brands sharing one banking licence share one limit). A limited company's account is protected separately from your personal accounts. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day registration is £156, through software filing only (for example via a formation agent). You can register directly at gov.uk or through a formation agent.

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