MoneyCue guide

How much Corporation Tax should I put aside?

Estimate how much UK Corporation Tax a small limited company may want to reserve from 2026 profits.

The current UK Corporation Tax structure has a 19% small-profits rate for profits up to £50,000, a 25% main rate above £250,000 and marginal relief between the standard limits. Those thresholds can be reduced for short accounting periods and associated companies.

Why reserve it before the bill arrives?

Because a healthy bank balance can feel spendable months before Corporation Tax is due. A tax reserve gives that future bill a visible job now.