The corporation tax calculator allows companies in Scotland and companies based outside Scotland with offices or branches in Scotland to calculate their corporation tax based on their companies financial year or using a standard tax year, the 2023 tax year for example runs from the 1st April 2023 to the 31st March 2024. The corporation tax calculator is useful for calculating corporation tax due in previous financial years and for forecasting corporation tax due in the next financial year, this is particularly important when producing financial forecasts and planning sufficient withholding to pay for the corporation tax bill when it is due.
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Corporation tax is very straightforward to calculate since 2015. Before 2015, calculating corporation tax meant applying different rates and thresholds depending on your companies situation and annual profits. In 2015, the UK tax laws surrounding corporation tax were simplified and a flat rate scheme adopted. This has made it easier for companies to measure their corporation tax commitments and make corporation tax calculations simpler and therefore easier for companies to comprehend and work with.
If corporation tax is so easy to calculate, why do I need a corporation tax calculator? Although corporation tax uses a simple math formula, it can be complicated somewhat by the fact that most companies have a different financial year to the UK tax year. This means that companies need to calculate exactly how much corporation tax is dues within in tax year, this is particularly important when corporation tax rates change. Miscalculating can mean paying far more corporation tax than is necessary or not paying enough and attracting fines from HMRC. Larger companies will watch fluctuations in corporation tax and declare their profits accordingly. If your profits are not split on a daily pro rata but declared specifically within certain quarters, you can use the profit share slider to override and declare certain profit amount for the desired tax year, note, this is not a legal means of tax avoidance, declaring profits incorrectly is tax evasion. Whilst HMRC will accept a daily pro-rata split, they will expect clear accounting detail to back up profit splits. You cannot simply declare all your profits in one period.
The simplest way to calculate your corporation tax is to use the Corporation Tax Calculator, if you prefer to calculate corporation tax manually or build your own corporation tax excel sheet, the guides below will help you on your way.
If your companies' financial year is aligned with the UK tax year (1st April to the 31st March), calculating corporation tax is very easy. You will simply need to know your annual profits for the year and the corporation tax for that year, then:
The following steps define how to calculate corporation tax for a company whose financial year is different to the UK's standard tax year
The following corporation tax examples illustrate the amount of corporation tax that would be payable on specific profits in 2023
The Corporation Tax Calculator is configured to calculate corporation tax from the 2015 tax year to the 2023. tax year. You can view the associated corporation tax tables below.