Articles on corporation tax, director salary, dividends, pension contributions and tax planning for UK limited company directors.
Running a limited company means dealing with tax on two levels: the corporation tax the company pays on its profits, and the income tax, National Insurance and dividend tax you pay personally when you extract that profit as salary or dividends. The articles below work through the decisions that sit between those two layers for the 2026/27 tax year — from the corporation tax rate bands and marginal relief, to the most tax-efficient salary and dividend mix, to whether your company can claim the Employment Allowance.
Each guide is written to be read alongside our calculators: where an article explains a rule, the matching tool lets you put your own numbers through it. Every figure is checked against current GOV.UK and HMRC guidance and updated when the rates change. The pieces are practical explainers for directors and owner-managers, not a substitute for advice on your specific circumstances.
Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance. See our editorial standards and methodology.
UK corporation tax for 2026/27 has three effective rates: 19% small profits rate up to £50,000, 25% main rate above £250,000, and marginal relief between the two. This guide explains how each applies with worked examples.
Read article →Most UK limited company directors use a combination of salary and dividends rather than taking all income one way. This guide explains why, what the optimal mix looks like in 2026/27, and what factors change the answer.
Read article →Employment Allowance reduces employer National Insurance by up to £10,500 in 2026/27. Most small limited companies can claim it, but sole director companies usually cannot. This guide explains the rules and how to claim.
Read article →Retained profit is money left in your limited company after all taxes and distributions. It belongs to the company, not to you personally. This guide explains how retained profit works, what tax applies when you eventually extract it, and common strategies.
Read article →Limited company directors can make pension contributions directly through the company, avoiding NI and reducing corporation tax. This guide explains the tax advantages, limits, and how employer pension contributions work in practice.
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