This calculator helps UK business owners and managers make informed financial decisions using current 2025/26 rates and regulations. Running a business in the UK involves understanding Corporation Tax, employer costs, VAT obligations, and various other financial considerations that directly affect profitability.
Accurate business calculations are essential for forecasting cash flow, setting prices, and ensuring compliance with HMRC requirements. This tool provides estimates based on current rates, though you should always verify critical figures with your accountant.
Corporation Tax is 25% for companies with profits over £250,000 and 19% for those under £50,000, with marginal relief in between. The VAT registration threshold is £90,000 (increased from £85,000 in April 2024). Employer National Insurance is 15% on earnings above £5,000 per employee, and the Employment Allowance of £10,500 offsets NI for eligible employers.
A small business with £120,000 annual revenue and £80,000 in allowable expenses has a taxable profit of £40,000. At the small profits rate of 19%, Corporation Tax would be £7,600, leaving £32,400 available for dividends or reinvestment. If VAT-registered, the business would also collect and remit VAT at 20% on applicable sales.
Source: Based on official HMRC 2025/26 business tax rates. Last updated March 2026.
Data verified against official UK government sources. Last checked April 2026.