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Corporation tax, VAT, dividends, mileage and self-employed income — calculators and guides for 2026/27.

5
Calculators
5
Guides
2026/27
Tax Year

Business Calculators

Free tools covering the key taxes and costs of running a UK business.

New 🏢
Corporation Tax Calculator
Calculate your company's corporation tax liability — with marginal relief, effective rate and payment dates for 2026/27.
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VAT Calculator
Add or remove UK VAT at any rate — standard (20%), reduced (5%) or custom. Instant gross/net/VAT breakdown.
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Dividend Tax Calculator
Calculate tax on dividend income for 2026/27 — including £500 allowance and rates at basic, higher and additional bands.
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Self-Employed Tax Calculator
Calculate income tax and Class 4 NI on self-employment profits — with payment on account estimates.
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Mileage Calculator
Calculate HMRC approved mileage allowances for business journeys — cars, motorcycles and bicycles at 2026/27 rates.
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Business & Tax Guides

Business Structure
Sole Trader vs Limited Company
A complete comparison of tax, liability, admin and income extraction — with worked examples at different profit levels.
Tax
Corporation Tax Explained
How corporation tax works, the 19%/25% rates, marginal relief, deadlines and allowable deductions.
VAT
How VAT Works in the UK
Registration threshold, standard and reduced rates, VAT schemes, returns and how to charge VAT correctly.
Tax
Dividend Tax Explained
The £500 allowance, rates at each band, how director dividends work, and the optimal salary/dividend split.
Expenses
Allowable Business Expenses
Every deductible expense for sole traders and limited companies — mileage, home working, equipment, capital allowances.

Key Business Tax Rates 2026/27

Corporation Tax

ProfitsRate
Up to £50,00019% (Small Profits)
£50,001–£250,00019–25% (Marginal Relief)
Over £250,00025% (Main Rate)

Thresholds halved for associated companies. Payment due 9 months & 1 day after year end.

Dividend Tax 2026/27

BandRate
Dividend Allowance (first £500)0%
Basic Rate (total income ≤ £50,270)8.75%
Higher Rate (£50,271–£125,140)33.75%
Additional Rate (above £125,140)39.35%

VAT Rates

RateApplies to
20% StandardMost goods and services
5% ReducedDomestic fuel, children's car seats
0% ZeroFood, books, children's clothing
ExemptFinance, insurance, education

Registration threshold: £90,000 annual turnover.

HMRC Mileage Rates 2026/27

VehicleRate
Car/van — first 10,000 miles45p/mile
Car/van — over 10,000 miles25p/mile
Motorcycle24p/mile
Bicycle20p/mile

Also Useful for Business Owners

Tax
Sole Trader Tax Explained
Self Assessment, Class 4 NI, payment on account and reducing your sole trader tax bill.
Expenses
Allowable Expenses for Sole Traders
Every deduction available to self-employed sole traders — with HMRC-approved mileage rates.
VAT
VAT for Small Businesses
When to register, how to charge VAT, and the flat rate and annual accounting schemes.
Hub
Self-Employment Hub
All self-employment calculators and guides in one place — contractor, sole trader and freelancer tools.

Business Tax — Frequently Asked Questions

The main corporation tax rate is 25% for companies with profits above £250,000. The Small Profits Rate is 19% for profits up to £50,000. Companies with profits between £50,000 and £250,000 receive Marginal Relief, creating an effective marginal rate of approximately 26.5%. These thresholds are divided equally among associated companies. Use the corporation tax calculator for an exact figure. Payment is due 9 months and 1 day after the company's accounting year end.
The VAT registration threshold is £90,000 in annual taxable turnover (from 1 April 2024). You must register within 30 days of the end of the month in which you exceeded the threshold. You can register voluntarily below this level — useful if your customers are mainly VAT-registered businesses and you want to reclaim input VAT. See our guide to how VAT works for the full process.
The dividend allowance is £500 — the first £500 of dividend income in the tax year is tax-free. Above the allowance, dividends are taxed at 8.75% (basic rate), 33.75% (higher rate) or 39.35% (additional rate), depending on your total income. The allowance has been reduced significantly since its introduction at £5,000 in 2016/17. For limited company directors, the dividend tax guide covers the optimal salary/dividend strategy.
The HMRC Approved Mileage Allowance Payment (AMAP) rate for cars and vans is 45p per mile for the first 10,000 business miles in a tax year and 25p per mile thereafter. Payments at or below these rates are exempt from income tax and NI. You can claim the difference as a deduction if your employer pays less than the AMAP rate. Use our mileage calculator to calculate your annual claim.
Sole trader is simpler — no Companies House registration, no corporation tax return, one Self Assessment filing. You pay income tax + Class 4 NI on all profits. A limited company pays corporation tax (19–25%) and lets you take income as salary + dividends, often saving tax at profit levels above £30,000–£40,000. The trade-off is more admin, accountancy costs and less flexibility with personal funds. See our full comparison guide: Sole Trader vs Limited Company.
Yes. Self-employed sole traders can use HMRC's simplified mileage rates (45p/mile first 10,000 miles, 25p thereafter for cars) or claim actual vehicle costs proportioned to business use — but not both for the same vehicle. Limited companies pay directors and employees at AMAP rates tax-free, or reimburse actual fuel costs. You must keep a mileage log recording the date, destination, business purpose and miles for every business journey. See allowable business expenses for the full rules.