Taxable Profit Calculation (Corporation Tax)

What this service covers

We calculate your company’s taxable profit for corporation tax purposes and provide a clear working paper you can rely on for compliance and planning. This typically includes:

• Reconciling accounting profit to taxable profit
• Reviewing income recognition and cut-off where it affects tax
• Identifying disallowable expenditure and adding it back (for example, certain entertaining and penalties)
• Considering allowable business expenses and ensuring they are treated correctly
• Calculating capital allowances and replacing depreciation with tax relief where relevant
• Bringing in prior year losses and other reliefs where available
• Flagging areas that may need clarification before filing (for example, mixed-use costs)
• Producing a taxable profit schedule that supports the corporation tax computation

When this is most useful

This service is a good fit if you run a limited company and want certainty before you file your CT600 and accounts. It is especially helpful if you have:

• One-off purchases, equipment, or vehicles where capital allowances may apply
• Business expenses that could be partly personal
• Entertainment, travel, or subsistence costs you want treated correctly
• A year with changing income levels, multiple revenue streams, or timing issues
• Losses to carry forward or other reliefs you want applied correctly

How the calculation is delivered

We start with your draft or final accounts and supporting bookkeeping reports, then work through the tax adjustments to arrive at taxable profit. Where something is unclear, we come back with specific questions so the position is agreed and documented.

You receive a concise taxable profit reconciliation showing what changed from accounting profit and why, written in plain English. This helps you understand the result, not just accept a number.

What happens after the calculation

Once taxable profit is confirmed, you can use it to finalise your corporation tax computation and CT600 filing, and to plan the payment due date. If the figures highlight opportunities or risks, we can outline practical next steps, such as tightening expense categories, improving records for claims, or forecasting future liabilities.