Corporation Tax Forecast UK

Forecasting Corporation Tax

This page is for forecasting how much Corporation Tax a company may need to set aside during the year. It is separate from the main Corporation Tax Calculator page and keeps the forecast URL focused on planning, cash flow and remaining tax to save.

The calculator uses the small profits rate, main rate and marginal relief band, then adjusts the profit limits if you enter a shorter accounting period or associated companies.

What the Calculator Results Mean

Forecast taxable profit is the profit figure you expect after tax adjustments.

Adjusted limits show the small profits and main-rate thresholds after accounting period and associated company adjustments.

Marginal relief is the reduction applied when taxable profits fall between the small profits limit and the main-rate limit.

Remaining amount to set aside subtracts anything already paid or saved from the estimated total Corporation Tax bill.

Example Calculation

A company forecasting taxable profits of £150,000 for a 12-month period with one associated company may fall into the marginal relief band. The calculator estimates tax at the main rate, deducts marginal relief and shows the effective rate.

Associated Companies and Thresholds

If your company has associated companies, the £50,000 and £250,000 limits are divided by the number of associated companies. This can move a company into marginal relief or the main rate sooner than expected.

Common Forecasting Mistakes

• Using accounting profit without checking tax adjustments.
• Ignoring associated companies when calculating thresholds.
• Forecasting everything at 19% when profits are above the small profits limit.
• Forgetting capital allowances, losses or disallowable expenses.
• Not setting aside cash during the year.