How This Calculator Works

The calculator takes your annual company income and deducts allowable business expenses, director salary, and employer pension contributions to calculate your estimated taxable profit. Based on current UK corporation tax thresholds, the appropriate tax rate is applied to provide an estimated corporation tax figure and net profit after tax. These calculations are intended to give a realistic overview of your company’s tax position rather than an exact figure.

How to Use the Calculator

Step 1: Enter your annual company income before tax. This should be your total business income for the year.

Step 2: Add your total allowable business expenses. These include costs such as software, travel, professional fees, and other legitimate company expenses.

Step 3: Enter the director’s salary paid through the limited company during the year.

Step 4: Add any employer pension contributions made by the company. These are treated as a business expense and reduce taxable profit.

Step 5: Click the Calculate button. The calculator will instantly show your estimated taxable profit, corporation tax due, and remaining profit after tax.

Understanding Your Results

The results are based on standard UK corporation tax rates, including the small profits rate and the main rate, with a marginal rate applied where relevant. Your actual tax bill may vary depending on factors such as associated companies, timing of income and expenses, and other available reliefs. For this reason, the figures shown should be used as a guide rather than a final tax calculation.

Assumptions Used in This Calculator

This calculator is based on standard UK limited company tax rules and makes a number of simplifying assumptions to provide an estimate. It assumes the business is a UK-registered limited company subject to UK corporation tax and does not account for overseas income or non-UK tax obligations.

The calculator assumes that all business expenses entered are fully allowable for corporation tax purposes. It also assumes that the director’s salary is paid through the company payroll and that employer pension contributions qualify as allowable business expenses and fall within HMRC’s “wholly and exclusively” rules.

Corporation tax is calculated using the standard UK small profits rate and main rate, with a simplified marginal rate applied where profits fall between the relevant thresholds. The calculator does not take into account associated companies, which can affect corporation tax thresholds and rates.

No allowance is made for other reliefs, credits, or adjustments such as capital allowances, losses brought forward, research and development relief, or group relief. Dividend taxation, personal income tax, and National Insurance contributions are also excluded from the calculations.

The calculator assumes a full accounting year and does not adjust for shortened accounting periods or changes in tax rates during the year. All figures are estimates and rounded for simplicity.

For accurate calculations tailored to your circumstances, professional advice from a qualified UK accountant is recommended.