How much Corporation Tax do I pay on £300,000 of company profit?

Full answer

UK Corporation Tax for 2026/27 has a small profits rate of 19% on profits up to £50,000, a main rate of 25% on profits of £250,000 or more, and marginal relief smoothing the transition for profits in between £50,000 and £250,000. Since £300,000 exceeds the £250,000 upper limit, no marginal relief applies and the full 25% main rate is charged on the entire profit: £300,000 x 25% = £75,000 Corporation Tax, leaving £225,000 after tax. This is a simple flat-rate calculation compared with profits in the marginal relief band, where the effective rate has to be worked out via the relief formula. Companies with profits above £250,000 should focus tax planning on reducing taxable profit itself -- through allowable expenses, director and employer pension contributions, the Annual Investment Allowance on qualifying capital expenditure, and R&D tax relief if eligible -- rather than on marginal relief, which no longer applies at this level. If the company has associated companies under common control, the £250,000 threshold (and the £50,000 one) is divided between them, which can bring a company with lower standalone profit into the flat 25% band sooner than it would otherwise be. Corporation tax is due nine months and one day after the end of the accounting period, with quarterly instalment payments required for larger companies. Use the Corporation Tax calculator for your exact figure.

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