This simple £ 25,000.00 corporation tax example is designed to illustrate how corporation tax is calculated in 2020. If you wish to calculate your corporation tax for any tax years preceding 2015, we suggest you use our detailed legacy corporation tax calculator for the UK. For all tax years from 2015 onwards, use our latest corporation tax calculator which is updated for corporation tax rates up to and including the 2023 tax year which runs from 1st April 2023 to the 31st March 2024.
Please note that this corporation tax example assumes that the companies financial year is aligned with the UK tax year. This is to provide a simple illustration of how corporation tax is calculated. Most companies in the UK have accounting years which are different to the UK tax year. In these cases, the corporation tax is calculated pro-rata with the profits share from each tax year taxed at the appropriate corporation tax rate. You can use the Corporation tax calculator to calculate corporation tax in this way, the calculator provides a detailed, step-by-step guide to calculating corporation tax when the financial year bridges two tax years
|£ 25,000.00||Annual Reported Profits between the 1st April 2020 to the 31st March 2021|
|x||17%||Corporation Tax Rate in 2020|
|=||£ 4,250.00||Corporation tax due in 2020|
We used the following criteria to calculate your corporation tax:
So, in this corporation tax scenario:
The Corporation tax due to HMRC in 2020 for annual profits of £ 25,000.00 is £ 4,250.00.
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The following articles are particularly useful for understanding how corporation tax is calculated and how to calculate corporation tax manually.