Corporation Tax Calculator
Get a quick insight into the amount of Corporation Tax your business is liable for in a few simple clicks.
Net profit
Profit/Loss incorporated by the company before expenseAllowed Expenses
Expenses that helps to keep a business runningAdd Back Expenses
Expenses which has the primary motive of obtaining profitProfit Before Corporation Tax
Corporation Tax (19%)
What is Corporation Tax?
Corporation Tax is a tax that is payable on all taxable profits of any company that is based in the UK, no matter where in the world the profit is generated. Corporation Tax is paid annually based on your Corporation Tax accounting period, which is usually the same as your company's financial year.
How to calculate Corporation Tax with this tool
This calculator generates your tax due amount by adding back any depreciation and client entertaining costs to the profit before tax, then subtracting any capital allowances to arrive at the profit value that is liable for Corporation Tax.
For the current tax year, tax is due at a rate of 19% on profits, so the calculator divides your liable profit by 100 then multiplies the resulting sum by 19 to arrive at your Corporation Tax due.
All you have to do is enter your net profit and your add-back expenses and other allowed expenses (such as salaries and other staff costs, cost of stock or raw materials, office costs, travel, and accommodation) to generate your Corporation Tax due.
Add back expenses
An add back expense is an expense that will not be included in the buyer's future P&Ls for the company. Understanding and applying add backs and other kinds of adjustments helps normalize a business's earnings on a go-forward basis.
List of add back expense
- Business entertainment
- The repayment of loans taken out personally to help run the business
- The depreciation of assets
- Drawings including payments for tax and National Insurance Contributions (NIC)
- Fines and costs resulting from breaking the law such as car parking fines, if incurred by proprietors or directors
- Charitable donations, including subscriptions, with the exceptions of small charities and political donations
Allowed Expenses
Allowable business expenses are purchased products or services that help keep a business running. Examples include stationery, phone bills, and travel costs to name a few. They are deducted from income when calculating taxable profit which means you don't pat tax on these items.
List of allowed expense
- Rent
- Insurance
- Heating
- Repairs and maintenance
- Wages, salaries and related staff costs
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