Answers · UK 2025/26
How much Corporation Tax do I pay on £50,000 of company profit?
On exactly £50,000 of taxable company profit in 2026/27, Corporation Tax is charged at the flat small profits rate of 19%, with no marginal relief needed. The bill is £9,500.
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UK Corporation Tax for 2026/27 has a small profits rate of 19% on profits up to £50,000 and a main rate of 25% on profits of £250,000 or more, with marginal relief smoothing the transition for profits in between. At exactly £50,000 of profit, you sit precisely at the small profits upper limit, so the entire profit is taxed at the flat 19% small profits rate with no marginal relief calculation required: 19% of £50,000 is £9,500. This is the highest profit level at which the simple 19% flat rate still applies -- earn even £1 more and marginal relief begins to apply, gradually increasing the effective rate as profit rises towards £250,000, where the full 25% main rate takes over. The £50,000 and £250,000 limits are reduced proportionately if the company has associated companies under common control, or if the accounting period is shorter than 12 months, so a company with, say, one associated company would see its small profits limit halved to £25,000. Corporation Tax is due nine months and one day after the end of the accounting period for smaller companies. Many small companies deliberately manage director pension contributions and capital allowances such as the Annual Investment Allowance to keep taxable profit at or below £50,000 and secure the lower flat rate. Use the Corporation Tax calculator for your exact figure.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.