2 min read
Estimates UK corporation tax across the 19% small-profits rate, 25% main rate and the marginal-relief band between.
What corporation tax is charged on
Corporation tax is charged on your company's taxable profit — broadly, profit after allowable business costs, but with some adjustments (for example, depreciation is replaced by capital allowances). It is not charged on turnover, and it is separate from VAT and PAYE.
The rates and marginal relief
Profits up to £50,000 are taxed at the 19% small-profits rate; profits above £250,000 at the 25% main rate. Between the two, marginal relief tapers the effective rate upward. The calculator below estimates the bill across all three bands so you can plan.
Deadlines that matter
Payment is due nine months and one day after your accounting period ends; the return (CT600) is due twelve months after. Large companies pay in instalments. Missing a deadline triggers interest and penalties, so mark both dates. See corporation tax deadlines and payments.
Funding the bill without pain
Because the bill arrives months after the profit was earned — often after the cash has been reinvested — many companies use short-term finance to bridge it. A working-capital facility covers the tax and is repaid as trading continues.
Credicorp lends to your company, not to you personally, and takes no personal guarantee. See indicative terms on business loans, or apply online in minutes.
Plan for it all year
Set aside a percentage of profit as you go, forecast the payment date, and keep a buffer. Read how to set money aside for VAT and tax and use the corporation tax calculator.
Frequently asked questions
When is corporation tax due?
Nine months and one day after the end of your accounting period, for most companies. The CT600 return itself is due twelve months after the period ends, so payment comes first.
Is corporation tax charged on turnover or profit?
On taxable profit, not turnover — so allowable costs reduce the bill. Note that accounting profit is adjusted (for example, capital allowances replace depreciation) to reach the taxable figure.
Can I borrow to pay corporation tax?
Yes. A short working-capital facility can cover a corporation-tax bill and be repaid as the business trades, avoiding a drain on reserves or a missed deadline. Credicorp lends to the company with no personal guarantee.
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