How to calculate Marginal Relief

2 mins

Our tax preparation specialists tell you how to calculate how much Marginal Relief you can claim against your Corporation Tax if you are eligible

At DSR Tax Refunds Ltd, we know that calculating tax reliefs can sometimes be a tricky task. That’s why our experts want to help make life as easy as possible for you by sharing our specialist knowledge with you. So, whether you are wanting more information about VAT or need to know about charitable tax relief, our handy guides are here to help. All our information is based on HMRC sources, so you can rest assured that these guides are filled with helpful and accurate information.

What is Marginal Relief?

Marginal Relief is a tax relief that a company can claim against their Corporation Tax bill, if their profits are between £300,000 and £1.5 million.

How do you calculate Marginal Relief?

You can calculate your Marginal Relief by accessing the HMRC online calculator. However, if your company makes its income from oil rights or extraction you won’t be able to use this method to calculate your Marginal Relief.

You will need to know your Corporation Tax accounting period and your taxable profits before you use the HMRC tool.

If your company is part of an association of companies, where it is either owned by another company, or owns another company, you need to enter the total profits for all the associated companies.

How can DSR Tax Refunds Ltd help?

We know that setting up a business can be hard work – there’s so much to think about and that’s before you start thinking about tax and tax reliefs. Our friendly team of tax specialists at DSR Tax Refunds Ltd are on hand to help make life easier for you. We’re the experts at identifying your maximum allowable expenses so call us on 0330 122 9972 – we’re the tax experts you can trust. 

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