UK Small Business Tax Calculator 2025

Estimate how much tax your UK small business owes for the 2025–26 tax year. Covers Corporation Tax, self-employment tax, PAYE, National Insurance and dividends.

UK Small Business Tax Calculator

Estimate your small company’s Corporation Tax, dividends tax, and owner take-home for the 2025/26 tax year.

Additional Options

Estimates only — for guidance, not financial advice.

Ready
Corporation Tax £0.00
Dividend Tax £0.00
Total Tax £0.00
Owner Take-Home £0.00
Details Amount (£)
Business Profit Before Tax 0.00
Corporation Tax 0.00
Dividend Tax 0.00
Owner Take-Home 0.00

 

UK Small Business Tax Rates 2025–26

Corporation Tax (Limited Companies)
£0 – £50,000 19% (Small Profits Rate)
£50,001 – £250,000 Marginal Relief (19%–25%)
Over £250,000 25% (Main Rate)
Income Tax (Self-Employed / Sole Traders)
Band Income Range Rate
Personal Allowance £0 – £12,570 0%
Basic Rate £12,571 – £50,270 20%
Higher Rate £50,271 – £125,140 40%
Additional Rate Over £125,140 45%
National Insurance (Self-Employed & Employees)
Class 2 (Self-Employed) Flat weekly rate
Class 4 (Self-Employed) 10% to £50,270 · 2% above
Class 1 (Employees) 10% to £50,270 · 2% above
Dividend Tax
Dividend Allowance £1,000 tax-free
Basic Rate 8.75%
Higher Rate 33.75%
Additional Rate 39.35%

Tax rates vary depending on whether your business is a sole trader, partnership or limited company.

How Small Business Tax Works in the UK

UK small businesses can be taxed in different ways depending on their structure. This calculator considers each major tax category to estimate your total liability.

  • Sole Traders pay Income Tax, Class 2 and Class 4 National Insurance.
  • Limited Companies pay Corporation Tax on profits.
  • Directors pay dividend tax and possibly PAYE tax.
  • If you employ staff, you must deduct PAYE tax and NI.
  • Business expenses reduce your taxable profit.

This calculator provides a combined estimate across these categories for 2025–26.

Small Business Tax Examples

Sole Trader – £30,000 Profit
  • Income Tax: £3,486
  • NI (Class 2 & 4): ~£1,200
  • Total Tax: ~£4,686
Limited Company – £50,000 Profit
  • Corporation Tax (19%): £9,500
  • Total Tax: £9,500
LTD + Dividends – £80,000 Profit
  • Corporation Tax: ~£16,000
  • Dividends after tax: ~£64,000
  • Dividend Tax: ~£10,000
  • Total Tax: ~£26,000

Frequently Asked Questions

No — tax depends on whether you’re a sole trader, limited company, partnership or contractor.

No — limited companies pay Corporation Tax on profits, while individuals pay Income Tax.

This UK Small Business Tax Calculator uses official 2025–26 HMRC rates for Corporation Tax, Income Tax, National Insurance and dividend tax.