UK Limited Company Corporation Tax Calculator

UK corporation tax calculator

Feel free to use our free online UK corporation tax calculator. This will help you, as a limited company owner, to understand how much tax you will pay to HMRC before 5th April 2023. Our free online UK corporation tax calculator will help you work out the corporation tax liabilities that must be paid to HMRC after 5th April 2023.

Disclaimer: This free online tac calculator does not constitute tax advice. Optimise Accountants cannot accept any responsibility/accountability for any decisions you make based on this UK corporation tax calculator.

Now that is out of the way. Please feel free to use our free online UK corporation tax calculator. Once you have used this UK corporation tax calculator, you must make proactive decisions to identify ways to mitigate corporation tax as a limited company owner.


 

Being tax efficient as a UK limited company director/shareholder

You will also want to know how to minimise corporation and income tax when you, as a director/shareholder, wish to extract money from a limited company.

Many directors and shareholders of UK limited companies are interested in using a company car. It is essential to understand the tax consequences of taking money out of a limited company, especially when using a car. There are several tax traps that you need to consider when using a company car.

You may be interested to know more about providing loans to a UK limited company as a director or shareholder. There are ways to take out tax-free interest from your limited company.

Corporation Tax rate before 1st April 2023

Before 5th April 2025, HMRC charged a flat rate of just 19% corporation tax on the profits made by a UK limited company. This 19% corporation tax flat rate was competitive throughout Europe. The 19% corporation tax rate was also very competitive against sole traders.

Sole traders paid an income tax rate of 20% for basic rate taxpayers, 40% for high rate taxpayers and 45% for additional rate taxpayers. In addition to income tax, sole traders would pay National Insurance class 2 and National Insurance class 4. An additional stealth tax.

Calculating the 19% corporation tax rate on UK limited companies was also straightforward. You did not need to use online calculators to perform this tax calculation. It is simple enough to do yourself.

Corporation tax rates after 1st April 2023

In Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1st April 2023

Any UK limited company that generates a profit of £50,000 or less would remain at the UK corporation rate tax of 19%. There is no change for these directors/shareholders of a UK limited company. There is no need to use an online calculator to see how much more tax you will pay after 1st April 2023, as there is no difference.

It is hard to work out, but there is a new effective tax rate of 26.5% corporation tax rate for UK limited companies between £50,000 and £250,000.

This means that UK shareholders and directors of limited companies would pay an additional 7.5%corporation tax rate on profits between £50,000 and £250,000.

The final amendment to UK corporation tax charges post 1st April 2023 is the 25% corporation tax rate on profits above £250,000.

Any shareholder of a UK limited company would pay an additional 6% corporation tax rate on profits over £250,000

UK corporation tax calculator

Feel free to use our free online UK corporation tax calculator. This will help you, as a limited company owner, to understand how much tax you will pay to HMRC before 5th April 2023. Our free online UK corporation tax calculator will help you work out the corporation tax liabilities that must be paid to HMRC after 5th April 2023.

Disclaimer: This free online tac calculator does not constitute tax advice. Optimise Accountants cannot accept any responsibility/accountability for any decisions you make based on this UK corporation tax calculator.

Now that is out of the way. Please feel free to use our free online UK corporation tax calculator. Once you have used this UK corporation tax calculator, you must make proactive decisions to identify ways to mitigate corporation tax as a limited company owner.


 

Being tax efficient as a UK limited company director/shareholder

You will also want to know how to minimise corporation and income tax when you, as a director/shareholder, wish to extract money from a limited company.

Many directors and shareholders of UK limited companies are interested in using a company car. It is essential to understand the tax consequences of taking money out of a limited company, especially when using a car. There are several tax traps that you need to consider when using a company car.

You may be interested to know more about providing loans to a UK limited company as a director or shareholder. There are ways to take out tax-free interest from your limited company.

Corporation Tax rate before 1st April 2023

Before 5th April 2025, HMRC charged a flat rate of just 19% corporation tax on the profits made by a UK limited company. This 19% corporation tax flat rate was competitive throughout Europe. The 19% corporation tax rate was also very competitive against sole traders.

Sole traders paid an income tax rate of 20% for basic rate taxpayers, 40% for high rate taxpayers and 45% for additional rate taxpayers. In addition to income tax, sole traders would pay National Insurance class 2 and National Insurance class 4. An additional stealth tax.

Calculating the 19% corporation tax rate on UK limited companies was also straightforward. You did not need to use online calculators to perform this tax calculation. It is simple enough to do yourself.

Corporation tax rates after 1st April 2023

In Spring Budget 2021, the government announced an increase in the Corporation Tax main rate from 19% to 25% for companies with profits over £250,000 together with the introduction of a small profits rate of 19% with effect from 1st April 2023

Any UK limited company that generates a profit of £50,000 or less would remain at the UK corporation rate tax of 19%. There is no change for these directors/shareholders of a UK limited company. There is no need to use an online calculator to see how much more tax you will pay after 1st April 2023, as there is no difference.

It is hard to work out, but there is a new effective tax rate of 26.5% corporation tax rate for UK limited companies between £50,000 and £250,000.

This means that UK shareholders and directors of limited companies would pay an additional 7.5%corporation tax rate on profits between £50,000 and £250,000.

The final amendment to UK corporation tax charges post 1st April 2023 is the 25% corporation tax rate on profits above £250,000.

Any shareholder of a UK limited company would pay an additional 6% corporation tax rate on profits over £250,000

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