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Calculate Limited Company Tax For The Tax Year 2024-25

Our Limited Company Tax Calculator is designed to help UK-based limited company contractors and small business owners estimate their tax liabilities for the 2024-2025 financial year. By inputting your annual turnover, expenses, pension contributions, and gross salary, you can gain a clear understanding of your company's financial position.

Whether you are a contractor, freelancer, or small business owner in the UK, this tool will help you understand how much tax your company owes and how much you can take home after taxes.

How to Use the Limited Company Tax Calculator

Enter the following details to estimate your tax obligations:

1. Annual Turnover (£)

Your company's total revenue for the year, excluding VAT.

2. Business Expenses (£)

Include deductible expenses such as:

  • Office rent and utilities
  • Travel expenses
  • Business insurance
  • Legal and accountancy fees
  • Marketing and advertising costs

3. Pension Contributions (£)

Company pension contributions reduce your corporation tax liability and are tax-efficient.

4. Gross Salary (£)

Total salary paid to all employees, including the director(s). Salaries are subject to Income Tax and National Insurance Contributions (NICs).

Limited Company Profits Calculator 2024-25

Summary Expenditure Limited Company Profits
Annual Turnover 0.00
Less:
Annual Business Expenses 0.00
Pension Contributions 0.00
Gross Salary 0.00
Employer’s NIC 0.00
Total Expenditure 0.00
Profit Before Tax 0.00
Corporation Tax 0.00
Net Profit available for distribution as Dividends 0.00

How We Calculate Your Tax Liabilities

1. Profit Before Tax

Calculated as:

Turnover - (Expenses + Salary + Pension Contributions)

2. Corporation Tax

Based on UK tax rates:

  • 19% for profits up to £50,000
  • 25% for profits over £250,000
  • Marginal relief applies for profits between £50,000 and £250,000.

3. Net Profit After Tax

The remaining profit after corporation tax.

4. Dividends Available for Distribution

After paying corporation tax, remaining profits can be taken as dividends:

  • £500 tax-free dividend allowance
  • 8.75% tax rate for income up to £50,270
  • 33.75% tax rate for income up to £125,140
  • 39.35% tax rate for income above £125,140

Key Considerations for Limited Company Owners

  • Tax-Efficient Salary & Dividends: Many directors take a low salary and higher dividends to reduce tax.
  • Pension Contributions: These reduce corporation tax and help with long-term financial planning.
  • VAT Registration: Required if your turnover exceeds £90,000.
  • Allowable Business Expenses: Deducting valid expenses lowers taxable profit and corporation tax.

Why Use Our Limited Company Tax Calculator?

  1. Quick & Accurate: Get an instant tax estimate.
  2. Easy Tax Planning: Helps you decide on salary, expenses, and dividends.
  3. Stay Compliant: Ensures you follow HMRC tax rules.

Important Note: This tool provides an estimate only. For personalised advice, consult a qualified accountant.

🔗 Visit Gov.uk for official tax rates.

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