17/07/2026
Director FAQ: How much should I be setting aside for Corporation Tax?
Well, it depends on your profit band. Profits of £50,000 or less pay the small profits rate of 19%. Profits above £250,000 pay the main rate of 25%. Anything in between qualifies for marginal relief, so your effective rate sits somewhere in the middle.
The safest habit is to move a percentage of every invoice into a separate savings account as soon as it's paid, rather than waiting until year end to work out what you owe. Little and often beats a scramble in month nine.
Want your exact rate? Get in touch.