Company tax rates 2025/26
Corporation tax, employer NIC, minimum wage, statutory pay, mileage and VAT.
Corporation Tax — financial years starting April 2025
| Profits | Rate | Notes |
|---|---|---|
| Up to £50,000 | 19% | Small profits rate |
| £50,001 – £250,000 | 19%–25% | Marginal relief applies |
| Over £250,000 | 25% | Main rate |
Marginal Relief gradually increases the effective rate from 19% to 25% for profits between £50,000 and £250,000. Associated companies: thresholds are divided by the number of associated companies, potentially pushing more profit into the 25% rate.
Employer National Insurance 2025/26
| Earnings Per Employee | Rate |
|---|---|
| Up to £5,000 (Secondary Threshold) | 0% |
| Over £5,000 | 15% |
Employment Allowance 2025/26: eligible employers can reduce their NIC bill by up to £10,500 per year. Class 1A NIC: 15% on expenses and benefits provided to employees (e.g. company cars, private medical).
National Minimum Wage — from 1 April 2025
| Category | Hourly Rate |
|---|---|
| National Living Wage (21+) | £12.21 |
| 18–20 year olds | £10.00 |
| 16–17 year olds | £7.55 |
| Apprentices | £7.55 |
Statutory Pay Rates — from 6 April 2025
| Type | Weekly Rate |
|---|---|
| Statutory Maternity Pay (first 6 weeks) | 90% of average weekly earnings |
| Statutory Maternity Pay (remaining weeks) | £187.18 or 90% AWE if lower |
| Statutory Paternity Pay | £187.18 or 90% AWE if lower |
| Statutory Adoption Pay | £187.18 or 90% AWE if lower |
| Statutory Shared Parental Pay | £187.18 or 90% AWE if lower |
| Statutory Sick Pay (SSP) | £118.75 per week |
Mileage Allowance Payments
| Vehicle | First 10,000 miles | Over 10,000 miles |
|---|---|---|
| Cars & vans | 45p per mile | 25p per mile |
| Motorcycles | 24p per mile | 24p per mile |
| Bicycles | 20p per mile | 20p per mile |
HMRC approved rates — employees using their own vehicles for business travel.
VAT 2025/26
| Rate | Applies To |
|---|---|
| Standard – 20% | Most goods and services |
| Reduced – 5% | Energy, children's car seats, some home improvements |
| Zero – 0% | Food, children's clothing, books, public transport |
| Registration Threshold | £90,000 turnover in 12 months |
| Deregistration Threshold | £88,000 turnover in 12 months |
Key Company Tax Deadlines
| When | Deadline |
|---|---|
| 9 months after year end | Corporation tax payment due (small companies) |
| 12 months after year end | Corporation tax return (CT600) filing deadline |
| 7th of each month | VAT return filing and payment deadline |
| 19th of each month | PAYE & NIC payment deadline (22nd if paying electronically) |
| 6 July each year | P11D submission deadline (expenses & benefits) |
| 19 July each year | Class 1A NIC payment on P11D benefits |
View 2024/25 rates → · ← All tax rates
Disclaimer: These rates are for guidance only and are based on HMRC published figures. Tax rules depend on individual circumstances and may change. Always seek professional advice before acting — get in touch for advice specific to your situation.
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