Corporation Tax calculator

If you run a limited company, you’ll need to pay Corporation Tax on your profits – minus any reliefs you claim. The current rate of Corporation Tax is 19%. There is no ‘personal allowance’ as there is with income tax and dividends – meaning all profits are taxable. 

How much Corporation Tax you pay will be calculated based on your net trading profit during the company’s financial year in question – or accounting period as its known. 

As this tax is calculated on your profits, you’ll need to work out what your net trading profit is for this period. This may differ from the profit in your profit and loss account as there may be some items which are not allowed for Corporation Tax purposes. Our guide to calculating profit will help you arrive at this figure – and we also recommend consulting with your accountant. 

Running a limited company comes with a significant admin burden – more so than operating as a sole trader. As part of your obligations at the end of the financial year, you’ll need to prepare:

• full (‘statutory’) annual accounts
• a Company Tax Return

Making sure your records and accounts are filed as accurately as possible is something for which you’ll likely need the support of a finance professional – and this can help to reduce the tax you owe. Our calculator is aimed to give you a loose guide but nothing can replace in-person guidance based your own specific situation. However, we do have a range of articles to guide you when it comes to running a limited company:

• Sole trader or limited company?
• What are dividends?
• What are shares and shareholders?
• Issuing shares in a limited company
• How do I file my company tax return?