Your in-app Corporation Tax estimate helps you stay ahead of your business finances by calculating how much your limited company might owe HMRC. Based on your daily incoming sales and outgoing expenses, the app provides a real-time preview of your upcoming liability. This enables you to comfortably set aside the right amount of funds in your tax pot before your payment deadline arrives, keeping your business fully compliant. 📊
Why tracking your estimate matters
All UK limited companies must pay Corporation Tax on their trading profits. Your liability is calculated based on your net business income minus your allowable business expenses over the course of the financial year.
Once your financial year ends, you must pay your final Corporation Tax bill to HMRC within 9 months of your financial year-end date. Using the live in-app estimate allows you to plan your cash flow effectively, ensuring you never face an unexpected bill at the end of the year.
⚠️ Reminder: Corporation Tax is completely separate from personal Income Tax. As a company director or shareholder, you may still need to pay personal Income Tax on any salary or dividends you receive from the business.
Where to find your Corporation Tax estimate
You can view your real-time tax calculation at any time by following these steps:
Open the app and tap the Accounting tab at the bottom of the screen. 📲
Tap Corporation Tax estimate.
The app calculates your estimate based on your recorded profits to date and assumes your business will continue to earn revenue at a consistent rate throughout the remainder of your financial year. 🧠
Understanding the app's calculation assumptions
To provide you with an immediate estimate without requiring complex configuration, the app makes a few standard baseline assumptions:
Account transactions only: The calculation relies exclusively on the business income and expenses recorded directly through your business account.
Traditional accounting methods: Profits are tracked using standard traditional accounting rules rather than a cash basis. This means calculations are based on your transaction, invoice, or bill dates rather than the day cash changes hands.
No carried-forward losses: The calculation assumes you have not carried forward any business losses from prior tax years, which would typically act to reduce your final tax bill.
Standard tax rate: The app applies a flat 19% tax rate for its real-time estimate, which matches the official UK small profits rate for companies earning under £50,000.
For the most up-to-date statutory Corporation Tax rates, higher band allowances, or individual relief advice, you can review the official GOV.UK Corporation Tax guidance or consult with your professional accountant. 🤝