19%
Small profits rate
Profits up to £50,000
Tax & wealth planning
Keep more of what your company earns.
Running a limited company gives you choices: how you pay yourself, what you do with your profits and when you invest. Make the right ones and you can legitimately pay less tax and build more wealth. We’ll show you how.
Corporation tax explained
What your company pays, and why.
Corporation tax is charged on your company’s profits, including gains from trading, investments and selling assets. The rate depends on how much profit you make.
19–25%
Marginal relief
Profits between £50,000 and £250,000. Your effective rate climbs gradually between the two.
25%
Main rate
Profits over £250,000
The £50,000 and £250,000 limits are reduced if your company has associated companies or an accounting period shorter than 12 months.
Corporation tax estimator
How much corporation tax will you pay?
Enter your company’s annual taxable profit for a quick estimate. It includes marginal relief, so you’ll see your real effective rate.
Assumes a 12-month accounting period, no associated companies and the rates in force since 1 April 2023.
Marginal relief · between 19% and 25%
Estimated corporation tax
£17,450
- Effective rate
- 21.81%
- Profit after tax
- £62,550
Want to bring that number down? Talk to us about tax planning →
This is an illustration, not tax advice. Your actual liability depends on your company’s circumstances, including adjustments, allowances and reliefs.
Planning
Four legitimate ways to reduce your corporation tax.
No schemes, no loopholes and nothing that will keep you awake at night. Just sensible planning that uses the rules the way they’re intended.
Pay yourself efficiently
Salary is a deductible expense for your company. Dividends aren’t, but they’re taxed differently in your hands. Getting the balance right between the two can make a real difference to what you take home, and we’ll work out the mix that suits you.
Boost your pension
Employer pension contributions are usually deductible for corporation tax and don’t attract National Insurance. That makes them one of the most tax-efficient ways to move money from your business into your future.
Reinvest in your business
Qualifying spending on equipment and machinery can often be deducted in full from your profits in the year you buy it. We’ll help you time bigger purchases so you get the most from the allowances available.
Claim every relief you’re due
Capital allowances, R&D tax relief, everyday expenses you didn’t realise were allowable: we’ll make sure you’re not paying a penny more than you need to.
An ongoing conversation
Tax planning isn’t a once-a-year job.
We review your position every time we prepare your accounts, and whenever something changes.
A big new contract, taking on staff, a major purchase, a change in your personal circumstances, thinking about what comes next for the business: each of these is a moment where the right advice can save you money. Because your books are always up to date, we can spot those moments early and talk them through with you in plain English.
- Planning built into your year-end, not bolted on
- Straight answers on salary, dividends and pensions
- Fees agreed upfront, never billed by the hour
Let’s talk
Let’s make your profits work harder.
Have a no-obligation conversation with us about your salary, dividends, pension and tax position. We’ll tell you straight where you could be doing better.
This page gives general information based on UK tax rules as at September 2026. It isn’t personal advice. Tax rules change and the right approach depends on your circumstances, so please speak to us before acting.