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

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.
£
£
£47,874 personal take-home / year £3,989/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,989
Total tax
£22,300
Effective rate
24.8%
Personal take-home£47,874
Dividend tax£4,696
Employer NI£1,136
Corporation tax£16,468
Company pension£0
Retained company cash£19,826
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£16,468.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,696.25
Retained company cash£19,826.46
Personal take-home£47,873.75
Effective tax rate24.78%
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HMRC 2026/27 · Methodology
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 May 2026. Written by the editorial team and reviewed 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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A director loan account (DLA) tracks money owed between a director and their company. This guide covers how DLAs work, when they attract tax charges, and how to manage them.
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What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
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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)Effective tax rate
£30,000£3,096£13,199£24,40319.0%
£50,000£6,896£29,399£38,86219.0%
£75,000£12,493£48,801£53,52920.4%
£100,000£19,118£67,176£65,33522.1%
£150,000£32,368£103,926£88,94623.8%
£250,000£58,868£177,426£133,85324.9%

2026/27 estimates. Director salary £12,570, all available post-tax profit taken as dividends, England. Effective tax rate is total taxes 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. Use SoleTraderTaxCalculator.co.uk alongside this site to compare both structures under the same profit assumption.
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.
Calculator suite

Independent UK finance calculator network

LimitedCompanyTaxCalculator.co.uk is part of an independent UK finance calculator network covering salary, employer costs, benefits, home buying and business tax.

AfterTaxSalary.co.uk
Use the PAYE salary tool when you want a pure employee baseline outside the company structure question.
EmployerCalculator.co.uk
Useful for isolating employer NI and payroll cost effects when director salary is the main planning variable.
UKBenefitsCalculator.co.uk
Relevant when household benefits planning sits alongside company extraction decisions.
HomeBuyingCosts.co.uk
Helpful once business take-home is being translated into a housing budget and buying costs plan.
SoleTraderTaxCalculator.co.uk
Estimate self-employed income tax, National Insurance and monthly tax set-aside before comparing whether a limited company is worthwhile.
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.