METHOD & GUIDANCE
How this calculation works
Keep tax-inclusive and tax-exclusive figures consistent, and use the rules and rate that apply to the relevant period and supply. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Start with a current forecast of taxable profit, enter the rate that applies to your company and update the reserve as the forecast changes. Confirm the final liability and payment date with your accountant or HMRC guidance.
Worked example
A forecast taxable profit of £60,000 at an entered 19% rate produces an £11,400 planning estimate. With £5,000 already reserved, another £6,400 is required before any tax already paid or credited.
Common mistakes
- Using accounting profit without considering tax adjustments.
- Assuming one rate applies to every company or profit level.
- Treating the planning reserve as a completed tax computation or return.
Frequently asked questions
Is the corporation tax reserve planner free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Does this calculator choose the correct VAT rate for me?
No. Enter the rate that applies to the supply. UK goods and services can be standard-rated, reduced-rated, zero-rated, exempt or outside the scope.
Continue the decision
- Cash Flow Forecast Calculator — Project closing cash from collections, payments and one-off movements.
- VAT Reserve Planner — Estimate the VAT cash to ring-fence before payment is due.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Popular small-business decision paths
- Check when VAT registration may be required
- Plan how much VAT cash to reserve
- Place the VAT payment in a cash-flow forecast
Method reviewed 29 July 2026. Figures are illustrative and calculated locally in your browser.