Corporation Tax Calculator 2026/27
UK corporation tax for 2026/27 is 19% on profits under £50,000 (small profits rate) and 25% on profits over £250,000 (main rate). Profits between £50,000 and £250,000 benefit from marginal relief. On £100,000 profit, your corporation tax is approximately £22,750 (effective rate 22.75%). Use the calculator below for your exact figure.
Figures verified against HMRC Income Tax rates on .
Written by James HartleyCIMA
Calculator
Enter your company's taxable profit for the accounting period.
Companies under common control count as associated - they reduce your thresholds.
Short periods reduce the £50k / £250k thresholds proportionally.
Enter your company's taxable profit
See your corporation tax for 2026/27 including marginal relief, payment dates and comparison table.
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How Corporation Tax Calculator 2026/27 Works
Corporation tax is charged on the taxable profits of UK limited companies. Since April 2023, the rate depends on whether your profits fall below, above, or within the marginal relief band. For the full rate tables, marginal relief rules, and director salary strategy, see our corporation tax rates guide.
The Three Rate Zones
| Profit Band | Rate | Tax on £100k | Notes |
|---|---|---|---|
| Up to £50,000 | 19% | £19,000 | Small profits rate |
| £50,001 to £250,000 | 19 to 25% | £22,750 | Marginal relief applies |
| Over £250,000 | 25% | £62,500 | Main rate |
Marginal Relief Formula
For profits between £50,000 and £250,000, HMRC applies Marginal Relief:
Marginal Relief = F × (U − P)
Where:
- F = 3/200 (the standard marginal relief fraction)
- U = upper limit (£250,000, adjusted for associated companies)
- P = taxable profit for the period
Associated Companies
If your company has associated companies (companies under common control), the £50,000 and £250,000 thresholds are divided equally between them. For example, with 1 associated company, the thresholds become £25,000 and £125,000.
When Do You Pay?
For most companies, corporation tax is due 9 months and 1 day after the end of the accounting period. Large companies (profits over £1.5m) must pay in quarterly instalments during the accounting period.
Frequently Asked Questions
For 2026/27, UK corporation tax is 19% on profits up to £50,000 (small profits rate) and 25% on profits over £250,000 (main rate). Profits between these thresholds benefit from marginal relief, giving an effective rate between 19% and 25%. These thresholds apply to a single company with no associated companies and a 12-month accounting period.
Marginal relief reduces your corporation tax bill when profits fall between £50,000 and £250,000. HMRC uses the formula: Marginal Relief = 3/200 × (£250,000 − profit). This is deducted from the gross tax calculated at 25%, giving an effective rate that tapers from 19% to 25% across the band. On £100,000 profit, the relief is: 3/200 × (£250,000 − £100,000) = £2,250, so tax = £25,000 − £2,250 = £22,750.
The small profits rate of 19% applies to companies with annual taxable profits of £50,000 or less (adjusted for associated companies and short accounting periods). This was the same flat rate that applied to all companies before April 2023, when the current two-rate system was reintroduced.
For most companies, corporation tax is due 9 months and 1 day after the end of the accounting period. For example, if your accounting period ends on 31 March 2025, payment is due by 1 January 2026. 'Large companies' (profits over £1.5m, adjusted for associated companies) must pay in quarterly instalments - two during the accounting period and two after it ends.
Associated companies are companies under common control - for example, if the same person owns 51% of two companies, those companies are associated. Each associated company reduces your £50,000 and £250,000 thresholds by an equal division. With one associated company, the thresholds become £25,000 and £125,000. This prevents multiple companies from each claiming the small profits rate separately.
It depends on your circumstances. Taking a salary equal to the personal allowance (£12,570) avoids income tax and is NI-efficient as an employer. Dividends above the £500 allowance are taxed at 10.75% (basic rate taxpayers), 35.75% (higher rate) or 39.35% (additional rate). The optimal split depends on your overall income, marginal rate, pension contributions, and other shareholders. Consulting an accountant is strongly recommended for personalised advice.
No. The main rate of 25% and small profits rate of 19% are unchanged for 2026/27. Marginal relief continues to apply for profits between £50,000 and £250,000. The marginal relief fraction remains 3/200. Associated company rules and quarterly instalment payment thresholds are also unchanged.
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Related Guides
Corporation Tax Rates 2026/27: Everything You Need to Know
A complete guide to the small profits rate, main rate, marginal relief and when quarterly instalments apply.
Read guideSalary vs Dividends: The Optimal Split for Directors in 2026/27
How to minimise tax as a limited company director, with worked examples at different profit levels.
Read guideCorporation Tax Planning Pack 2026/27
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.