1. What is UK Corporation Tax?

UK Corporation Tax is a tax levied on the taxable profits of limited companies and other organizations including clubs, societies, associations, and other unincorporated bodies. The tax rates for 2025/26 range from 19% to 25% depending on profit levels.

2. How Does the Calculator Work?

The calculator uses the UK Corporation Tax formula:

Where:

• \( Taxable\ Income \) — Company's taxable profits in GBP
• \( Rate \) — Applicable corporation tax rate (19-25%)

Explanation: The calculation multiplies taxable income by the appropriate corporation tax rate to determine the tax liability.

3. Importance of Tax Calculation

Details: Accurate corporation tax calculation is essential for financial planning, compliance with HMRC requirements, budgeting for tax payments, and avoiding penalties for underpayment.

4. Using the Calculator

Tips: Enter taxable income in GBP and select the appropriate tax rate between 19-25%. Ensure all values are valid (income > 0, rate between 19-25%).

5. Frequently Asked Questions (FAQ)

Q1: What are the current UK corporation tax rates?
A: For 2025/26, rates range from 19% to 25% depending on profit levels, with different thresholds for small profits and main rate.

Q2: When is corporation tax due?
A: Corporation tax is generally due 9 months and 1 day after the end of your accounting period.

Q3: What constitutes taxable income?
A: Taxable income includes trading profits, investment returns, and chargeable gains, minus allowable business expenses and capital allowances.

Q4: Are there any reliefs or allowances available?
A: Yes, various reliefs include Research & Development (R&D) tax credits, capital allowances, and loss relief provisions.

Q5: Should I consult a professional for complex tax situations?
A: Yes, for complex business structures, international operations, or significant transactions, professional tax advice is recommended.