Our UK Corporation Tax Calculator

Posting to HMRC

Find out how much your small business will be sending to the tax man with our simple corporation tax calculator for UK businesses in 2020 / 2021.

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A Few Frequently Asked Questions on Corporation Tax

What is corporation tax?

It’s a tax on company profits and is paid every year, based on your company tax accounting period. It’s also usually your company’s financial year (which can be different to the normal tax year).

In some ways, corporation tax is to businesses what income tax is to individuals. As a small business you pay corporation tax on net profits by generally doing the business, but also investing and selling assets as a company.

What is the current corporation tax rate? (2020/2021)

The Corporation Tax main rate (excluding ring fence profits) is currently at 19% for 2020/21 and has been for years starting 1 April 2017, 1 April 2018 and 1 April 2019.

Who has to pay corporation tax?

If you do business as any of the following, you will have to ensure you pay corporation tax:

  • A registered limited company
  • A foreign company that has a UK office/branch
  • A club, co-operative of any ofther unincorporated associated (like a community group or a sports club)

What will the corporation tax rate be in 2021?

For the tax year starting 1 April 2021 (so 2021/22) it will stay the same at 19%, which was announced by the government in the 2020 budget.

When is the corporation tax deadline?

You must file a corporation tax return before 12 months has passed since the end of the accounting period it covers, otherwise you’ll have to pay a penalty. However, you must pay your corporation tax bill (if an amount is payable), usually 9 months and 1 day after the end of the accounting period.

How is UK corporation tax calculated?

It’s calculated using the percentage for the tax year (shown above) and applied to taxable profits

Do personal service companies pay corporation tax?

Yes, personal service companies such as contractor limited companies are required to pay it on their profits.

Where can I find more information on Corporation Tax?

The HMRC have more information on corporation tax rates, registration and more.