About LimitedCompanyTaxCalculator.co.uk

What this site is for

Use the limited company tax calculator to estimate corporation tax on company profit and the after-tax income from different pay combinations. The salary vs dividend calculator models the most tax-efficient split for a director-shareholder, the corporation tax calculator works out the bill including marginal relief, and the director take-home calculator and dividend tax calculator show what actually reaches your pocket.

The guides answer the specific questions directors actually ask, for example "what is the most tax-efficient salary and dividend split for a director?", "how is corporation tax calculated when profit falls in the marginal relief band?" and "how much of a dividend can my company afford to pay?". These are planning estimates. For a company tax return, a formal remuneration policy or a decision with significant financial consequences, check the current position on GOV.UK and HMRC or speak to a qualified accountant.

What we cover

• Corporation tax — the small profits rate, the main rate and marginal relief between the lower and upper limits, with worked examples for a range of profit levels.
• Salary and dividend extraction — how to think about the most tax-efficient salary and dividend mix for a director-shareholder, and how the choice interacts with corporation tax, income tax and National Insurance.
• Dividend tax and the dividend allowance — how the dividend allowance and the dividend tax bands work, and how dividends stack on top of salary and other income.
• Director National Insurance and employer NI — the thresholds that apply to a director's salary, employer NI on pay above the secondary threshold, and where the Employment Allowance does and does not help.
• Director take-home and retained profit — after-tax income from different pay combinations, and how much cash the company retains once tax and dividends are accounted for.
• Company pension contributions — how employer pension contributions reduce taxable profit and fit into a director's overall extraction plan.
• IR35, expenses and structure — off-payroll working for contractors, allowable company expenses, and the sole trader versus limited company decision.

Editorial approach

Every calculator and guide is written in plain British English and reviewed against current HMRC and GOV.UK guidance for the active tax year. We prioritise practical accuracy, transparent assumptions and pages that genuinely help a director make a decision, rather than pages that restate definitions without helping anyone act.

We show our workings. Where a calculation is simplified or an assumption is made, it is stated on the page and explained in full on the methodology page. Our editorial standards set out how we write, review and update content, and the official GOV.UK and HMRC sources we check every rate against.

The site is free to use and funded by advertising. That never affects the figures our calculators produce or the guidance we give. This site provides general information and estimates, not tax, accounting, legal or financial advice.

How the site is maintained

• Calculator rates and thresholds are updated when HMRC confirms corporation tax, dividend, National Insurance and personal tax figures for the tax year.
• Guides and calculators are reviewed at each Budget, Autumn Statement or relevant policy change that affects limited company taxation.
• Pages are updated when users report confusing assumptions, unclear wording or figures that look out of date.
• We do not publish thin pages that add no practical value for a UK company director or contractor audience.

Editorial ownership and contact

James Whitfield is the editorial owner of LimitedCompanyTaxCalculator.co.uk. He writes about UK limited company taxation, director remuneration and small company tax planning, covering corporation tax and marginal relief, the salary versus dividend decision for director-shareholders, dividend and National Insurance planning, and the sole trader versus limited company choice. James writes and maintains the calculators and guides on this site, and every figure is checked against official HMRC and GOV.UK guidance. He is not a regulated tax adviser, so for decisions about your own situation, consult a qualified professional.

His work focuses on turning complex HMRC rules into plain-English guidance that is practically useful for owner-managers modelling how to pay themselves, as a clear starting point before speaking to an accountant, rather than a substitute for regulated professional advice.

Every calculator and guide is reviewed against current HMRC and GOV.UK guidance before publication, rates are updated when HMRC confirms new figures, and errors reported by readers are corrected promptly.

For corrections, data-quality feedback or editorial queries, use the contact page.

Last reviewed: July 2026. Tax year: 2026/27.