LimitedCompanyTaxCalculator
Updated for 2026/27

Limited Company Tax Calculator 2026/27

Enter company profit, director salary and dividends to see the full 2026/27 tax picture: corporation tax (19% small profits, 25% main rate), employer NI, dividend tax and your net personal take-home.

Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.

Calculate company tax Read the guides
Corporation tax 19%–25%Director salary + dividendsEmployer NI includedCompany pension optional
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown
Selling a property or shares? Work out your capital gains tax → Buying a home? See what it last sold for, free → Paying yourself dividends? Work out your dividend tax →

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,749 personal take-home / year £3,979/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,979
Total tax
£18,450
Effective rate
24.6%
Personal take-home£47,749
Dividend tax£4,821
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,821.25
Retained company cash£8,801.46
Personal take-home£47,748.75
Effective tax rate24.60%
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HMRC 2026/27 · Methodology

Need more than director's pay? Get all 7 tax packs in the Tax Pack Library — £9.99 

Quick answer

A UK limited company pays 19–25% corporation tax on profit; taking a £12,570 salary plus dividends (taxed at 10.75%, 35.75% or 39.35% above the £500 allowance) is usually the most tax-efficient split.

· Corporation tax: 19% / 25% (marginal relief between)
· Optimal director salary: £12,570
· Employer NI: 15% on salary above £5,000
· Dividend tax: 10.75% / 35.75% / 39.35% after £500
About this tool

UK limited company tax estimate for directors and owner-managers

Estimates corporation tax, employer NI, dividend tax and personal take-home from company profit for 2026/27. Enter company profit before director salary — the model shows what happens at every layer of the company-to-pocket journey. See the methodology for full assumptions.

Last updated July 2026. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance. Results are estimates for planning only and are not tax, accounting or financial advice.

Updated for 2026/27 HMRC / GOV.UK rates Estimate only — not advice See methodology
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Practical guides

Limited company guides

Limited Company Tax in Scotland 2026/27: Salary, Dividends and Corporation Tax
In Scotland, corporation tax is the same 19%–25% as the rest of the UK and dividends are taxed at the UK rates of 10.75%, 35.75% and 39.35%. Only a director's salary uses Scottish income tax bands. 2026/27 examples.
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Corporation tax rates 2026/27: 19% on profits up to £50,000, 25% over £250,000, marginal relief between (26.5% marginal rate). £100,000 profit pays £22,750. Table and examples.
Optimal Salary and Dividend Split for Directors 2026/27
How to calculate the tax-efficient salary and dividend combination for a limited company director in 2026/27, covering corporation tax, income tax, NI and the dividend allowance.
Salary vs Dividends 2026/27: The Optimal Split for Company Directors
The tax-efficient salary vs dividends split for UK company directors in 2026/27: a £12,570 salary, then dividends taxed at 10.75%. Corporation tax, the £500 dividend allowance, employer NI and a full worked example extracting £50,000.
Director's Loan Account 2026/27: s455 at 35.75%, 30-Day Rule
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Limited Company Allowable Expenses: A Practical Guide 2026/27
What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
About limited company tax

UK limited company tax explained

Corporation tax
Corporation tax applies to company profits. For 2026/27: 19% on profits up to £50,000, 25% on profits above £250,000, with tapered marginal relief between those thresholds. Note: associated companies can halve these limits. Tax is paid via the Company Tax Return.
Director salary and PAYE
Director salary is processed through PAYE. Most owner-managers set salary at or near the Personal Allowance (£12,570) to reduce income tax while building NI qualifying years. Salary reduces company profit before corporation tax.
Employer National Insurance
Employer NI applies to director salary above the secondary threshold (£5,000 for 2026/27) at 15%. This is a company cost that reduces profit before corporation tax. It can significantly affect the total tax picture at higher salary levels.
Dividends and dividend tax
Dividends are paid from post-corporation-tax company profit. For 2026/27, the dividend allowance is £500. Rates above that: basic rate 10.75%, higher rate 35.75%, additional rate 39.35%. Dividends are not subject to NI, making them tax-efficient alongside a modest salary.
Retained profit
Company profit not distributed as salary or dividends stays in the company as retained cash after corporation tax. This can be used for future extraction, investment, pension contributions or as a financial buffer. It is shown explicitly in this calculator so you can model the full picture.
Company pension contributions
Employer pension contributions reduce company profit before corporation tax and are not subject to NI. This makes them one of the most tax-efficient ways to extract value from a company for longer-term planning. They are shown separately in the breakdown.
Quick reference

UK limited company tax 2026/27 — common profit examples

Company profitCorporation taxPost-tax profitPersonal take-home (all divs)Total tax rate
£30,000£3,096£13,199£24,40318.7%
£50,000£6,896£29,399£38,86222.3%
£75,000£12,493£48,801£53,40428.8%
£100,000£19,118£67,176£65,21034.8%
£150,000£32,368£103,926£85,11043.3%
£250,000£58,868£177,426£128,05448.8%

2026/27 estimates. Director salary £12,570, all available post-tax profit taken as dividends, England. Total tax rate is corporation tax, employer and employee NI, income tax and dividend tax as a % of company profit. Use the calculator above to model your own salary/dividend split. Approximate figures only.

FAQ

Limited company tax — common questions

How much tax does a limited company pay?
Corporation tax applies to company profits: 19% up to £50,000, 25% above £250,000, with marginal relief between. On top of that, directors pay income tax and NI on salary, and dividend tax on distributions. The total tax depends heavily on how you extract value from the company.
Does this calculator include corporation tax?
Yes. Corporation tax is calculated using 2026/27 rates including marginal relief for profits between £50,000 and £250,000. It appears in the breakdown separately from personal taxes.
How are dividends taxed?
Dividends come from post-corporation-tax profit. For 2026/27: £500 dividend allowance, then 10.75% (basic), 35.75% (higher) or 39.35% (additional rate). Dividends are not subject to National Insurance, which is why they form part of most owner-manager tax strategies.
Is salary or dividends more tax efficient?
Neither is always better. A salary up to the Personal Allowance avoids income tax. Employer NI applies above £5,000 per year. Dividends avoid NI but are paid from post-corporation-tax profit. Most directors use both. This calculator lets you model the combination that suits your situation.
Does this include employer National Insurance?
Yes. Employer NI at 15% on director salary above £5,000 is included as a company cost and shown separately in the breakdown. It affects corporation tax (it reduces profit before CT) and your effective tax rate.
Why does personal take-home stay the same when I increase company profit?
Personal take-home depends on what you actually withdraw as salary and dividends, not total company profit. If salary and dividends stay fixed, a higher company profit simply increases retained company cash — it does not automatically increase your personal income. Increase dividends to take more personally.
Can my company pay into my pension?
Yes. Employer pension contributions reduce company profit before corporation tax and are not subject to NI. They are shown separately in the calculator. Contribution limits and rules apply — check GOV.UK or consult an adviser.
Should I stay sole trader or go limited?
It depends on profit level, extraction plans, admin burden and long-term goals. Comparing both structures under the same profit assumption — sole trader income tax and National Insurance versus company corporation tax plus salary and dividend extraction — is the clearest way to decide.
Is this tax advice?
No. All outputs are estimates for planning and comparison purposes only, based on published 2026/27 HMRC rates. For company tax returns, director remuneration strategy or formal advice, consult a qualified accountant.
How it works

Three steps to a limited company tax estimate

01
Enter company profit
Enter company profit before director salary and corporation tax. Use annual, monthly, day rate or hourly mode.
02
Set salary and dividends
Model how much you take as director salary and how much to distribute as dividends from post-corporation-tax profit.
03
Review the full picture
See corporation tax, employer NI, dividend tax, personal take-home and retained company cash in one joined-up view.
Methodology
The HMRC rates, formulas and assumptions behind every number in this calculator.
Guides
Director salary, dividends, corporation tax, company pensions and the sole trader vs limited company comparison.
Planning estimates only
Not tax advice, not a filing tool. For formal company tax advice, consult a qualified accountant.
Sources and methodology

HMRC and GOV.UK sources

Corporation tax rates — GOV.UK
Tax on dividends — GOV.UK
Income tax rates and allowances — GOV.UK
National Insurance rates — GOV.UK
Employer National Insurance contributions — GOV.UK
Pension contribution rules — GOV.UK

All tax figures are estimates based on published HMRC rates for 2026/27. Results are for planning purposes only and should not be used as the basis for filing or formal tax advice.

Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - eligible deposits are FSCS protected up to £120,000 per eligible depositor, per authorised bank (brands sharing one banking licence share one limit). A limited company's account is protected separately from your personal accounts. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day digital registration is £156. You can register directly at gov.uk or through a formation agent.

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