space tax calculator matters2

Uk CORPORATE Tax Calculator

How much are you going to pay?

Until a while ago this was a reasonable and easy question that big and small businesses could easily answer: how much are you going to pay in taxes this year? If you are based in the UK, this year it will be more challenging for small business to understand exactly how much they are going to pay.

This is because if under £50,000 you pay 19% and over £250,000 you pay 25%, in between £50,000 and £250,000 things are not really straightforward. In this bracket you will need to apply a Marginal Relief that will proportionally increase your Tax Rate from 19% to 25%. 

New Rates - New Rules

HMRC defines the new tax rates as follows:

  • Small Profit Rate: 19% for taxable profits below £50,000 (the so-called Lower Limit)
  • Main Rate: 25% for taxable profits above £250,000 (the Upper Limit)

The Marginal Relief provides a gradual increase in Corporation Tax rate between the small profits rate and the main rate. But how can you calculate your Marginal Relief?

Easy Math But Difficult Explanation

If you try to read HMRC’s guidance on the matter it might take a while to get a hold of a proper explanation, but once you get to it the math is not too difficult.

In order to calculate how much tax you will owe with taxable profits between the Upper and the Lower Limit, you have to multiply your profit by the Main Rate (25%) and then subtract the Marginal Relief. 

At the same time, in order to calculate the Marginal Relief you use the so-called Standard Fraction. This is used to proportionally scale down your tax rate. The formula to calculate your taxes is:

(Taxable Profits x Main Rate) – ((Upper Limit – Taxable Profits) * Standard Fraction)

space tax calculator matters2

Stable Diffusion: A tax calculator with space vibes and cosmic rays

Our Calculator

Alternatively, you can use our calculator here below:

Two columns
Vertical
Horizontal
Enter Your Taxable Profits
Tax
Name Total
"{{getWooProductName}}" has been added to your cart

A SMALL DISCLAIMER

Always talk to your accountant!

This calculator can inform you in your decisions but it will never substitute expert and professional advice… Not happy with your accountant or advisors? Reach out, we can help!

space tax calculator matters2

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form
your cofounder matters2

The Ideal Co-Founder

"Get yourself a co-founder!" routinely tops lists of the best business advice from successful entrepreneurs.
Space Matters2

TRLs

Technology Readiness Levels (TRLs) are a type of measurement system to assess the maturity level of a particular technology. TRLs are based on a scale from TRL 1 to TRL 9, with…
maker marketer & manager

The Trinity of Management

WE ARE MAKERS, MARKETERS AND MANAGERS We believe that in order to deliver amazing results a company must excel at 3 things

SUBSCRIBE TO OUR NEWSLETTER
TO RECEIVE UPDATES ON NEW ARTICLES

Website's Newsletter Form

Valuation

How to value my company? Sure, you want to…
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments