Corporation tax calculator

How your corporation tax is calculated

The total corporation tax you owe depends on two things:

• Your business income
• Your business expenses

Your total taxable earnings (income minus expenses) determine how much Corporation Tax you'll need to pay and whether you'll get any marginal relief.

You can read more about it in this guide on paying your Corporation Tax.

In your case, where your total income was £10,000 and your expenses were £3,000, your total taxable income, or profit, was £7,000.