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.

Corporation Tax Rates 2026/27: 19%, 25% and Marginal Relief

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

Overdrawn director's loan account in 2026/27: s455 at 35.75% if not repaid 9 months and 1 day after year end, refundable later; £10,000 benefit-in-kind limit; 30-day rule.

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.

Limited Company vs Sole Trader: Full Tax Comparison 2026/27

A detailed comparison of limited company and sole trader structures on net income, administrative complexity and risk. Includes worked examples at £40k, £60k and £100k profit levels.

Sole Trader vs Limited Company Calculator: Tax Comparison 2026/27

Sole trader vs limited company tax comparison 2026/27. NI rates, income tax, corporation tax and worked examples at £50k, £80k and £100k profit. See where, and why, it pays.

Sole Trader vs Limited Company: Complete Tax Comparison 2026/27

Sole trader vs limited company complete tax comparison 2026/27. Income tax, NI rates, corporation tax, worked examples at £50k, £80k and £100k, and when it's worth switching.

Company Pension Contributions for Directors 2026/27: Limits and Tax Saved

Limited company director pension contributions 2026/27: employer contributions are corporation tax deductible, no employer NI, up to £60,000 annual allowance. Worked examples included.

Corporation tax rates and marginal relief explained

How UK corporation tax rates work for small and larger companies in 2026/27, what marginal relief means and how director salary and pension choices affect the bill.

Director salary: how to think about the right amount

Why director salary is not just a threshold exercise, how it interacts with employer NI, corporation tax, dividends and personal tax, with examples.

Dividends for owner-managers: a practical guide

How dividends are taxed, the 2026/27 rates, what can lawfully be distributed, and how dividends interact with salary, corporation tax and retained profit.

Retained profit in a limited company

Why retained company cash is a decision variable, not a residual, how it affects corporation tax, future dividends and director planning.

Company expenses: what a limited company can deduct

How allowable company expenses reduce taxable profit before corporation tax, what can and cannot be claimed, and why getting this right matters for every extraction decision.

Salary vs Dividends 2026/27, Optimal Strategy

Most single-director companies take a low salary plus dividends to save National Insurance. This guide covers the optimal salary, dividend tax rates, worked examples and when the strategy breaks down.

IR35 Explained, Inside vs Outside

IR35 targets disguised employment through limited companies. This guide explains the three key tests, who decides status under the off-payroll rules, and what inside IR35 means for take-home pay.

Optimal Director Salary 2026/27: £12,570, £5,000 or NMW?

The best director salary for 2026/27 is usually £12,570: no income tax or employee NI, £1,135.50 employer NI, more corporation tax saved. £5,000 and £6,708 compared.

Corporation Tax on £100,000 Profit 2026/27 | Worked Example

Exactly how much corporation tax does a UK limited company pay on £100,000 profit in 2026/27? Full marginal relief calculation, effective rate, and how salary and pension reduce the bill.

Corporation Tax on £50,000 Profit 2026/27 | 19% or Marginal?

How much corporation tax on £50,000 profit in 2026/27? At exactly £50,000 the small profits rate is 19% (£9,500). See how director salary pushes profit below this threshold and saves tax.

Small Profits Rate 2026/27: 19% Corporation Tax up to £50,000

The small profits rate is 19% for 2026/27 on taxable profits up to £50,000 (£9,500 on £50,000). Who qualifies, associated companies, short periods and how salary and pension keep you under.

Marginal Relief Calculator 2026/27: Corporation Tax £50k–£250k

Free marginal relief calculator: enter profit, associated companies and period length. £100,000 profit → £22,750 corporation tax (22.75%). HMRC's 3/200 formula, worked examples.

Director Dividend and Salary Split Guide 2026/27

How to calculate the most tax-efficient salary and dividend combination for a limited company director in 2026/27. Covers all thresholds, NI rates, worked examples and when to retain vs extract.

Limited Company vs Umbrella Company 2026/27 | Contractor Guide

Limited company vs umbrella company for UK contractors 2026/27. Tax comparison, take-home pay difference, IR35 implications, costs and when each structure makes sense.

Forming a Limited Company: Tax Guide for First Year 2026/27

Everything you need to know about limited company tax in your first year: corporation tax, director salary, dividends, employer NI, Companies House and HMRC registration. 2026/27 rates.

Closing a Limited Company: Tax, MVL vs Strike-Off and BADR (2026/27)

The two main routes for closing a limited company are MVL and striking off. This guide covers Business Asset Disposal Relief, the £25,000 threshold, and how to extract retained profits efficiently before closure.

How Much Tax Does a Limited Company Pay? 2026/27

Full guide to how much tax a UK limited company pays in 2026/27: corporation tax 19%–25%, employer NI, dividend tax and the combined effective rate across all layers with worked examples.

Contractor Take-Home Pay Guide 2026/27 | Ltd Company

How much does a UK limited company contractor actually take home in 2026/27? Day rate to take-home calculation, corporation tax, dividends, NI. Full worked examples at £300, £400 and £500 day rates.

Limited Company Year-End Tax Planning Guide 2026/27

What to do before your limited company year-end to minimise corporation tax in 2026/27: salary, pension, expenses, timing and the most valuable decisions to make before accounts are finalised.

Directors' National Insurance 2026/27: The Annual Earnings Period Explained

How company directors' National Insurance is calculated for 2026/27: the annual earnings period, the £5,000 and £12,570 thresholds, lump-sum salaries, directors appointed mid-year and the alternative arrangements payroll software uses.

Director's Loan Benefit in Kind 2026/27: The £10,000 Rule

Director's loans over £10,000 are a taxable benefit: interest saved at 3.75%, on a P11D by 6 July, plus 15% Class 1A. Worked £25,000 example.

Writing Off a Director's Loan: Tax, NI and s455 Refund

A written-off director's loan is taxed as a dividend and HMRC also charges Class 1 NI; the company reclaims s455. Worked £20,000 example and the cheaper route.

Two Directors: Salary and Dividend Split 2026/27

Two directors on £12,570 each plus 50/50 dividends: £100,000 profit gives £77,702 between you (£65,210 for one). Employment Allowance, unequal splits and worked figures.

How Much Can a Director Take Before 40% Tax? 2026/27

A director can take £50,270 in 2026/27 before higher-rate tax: £12,570 salary plus £37,700 of dividends, costing £3,999 in dividend tax. The £60k, £100k and £125,140 limits too.

Corporation Tax on £200,000 Profit 2026/27 | Worked Example

Corporation tax on £200,000 profit is £49,250 for 2026/27 (24.6%) after marginal relief. With a £12,570 salary it is £45,618.04; what a director takes home, and the options.

Limited Company With a PAYE Job: Salary or Dividends? 2026/27

Employed and running a limited company? Your job uses the Personal Allowance, so company dividends stack on top: 10.75% to £50,270, then 35.75%. Why a £5,000 salary still pays.

How to Calculate Taxable Profit for Corporation Tax 2026/27

Taxable profit = accounts profit + disallowed costs (depreciation, entertaining, fines) − capital allowances. Salary, employer NI and pensions are deductible; dividends are not. Worked example.

Associated Companies and Marginal Relief 2026/27

Control two companies? The £50,000 and £250,000 corporation tax limits are divided by the number of associated companies: £25,000 and £125,000 each for two. Rules and worked example.

Property Limited Company Tax 2026/27: Rental Profits, CT and Dividends

A property company pays 19% to 25% corporation tax with full mortgage interest relief; individual landlords get only a 20% credit. SDLT 5% surcharge, ATED and a worked example.

Company Director Self Assessment 2025/26: What's Due 31 January 2027

Your 2025/26 director's tax return: when you must file, salary on the Employment page, dividends at 8.75% and 33.75%, payments on account, and a worked £12,570 + £40,100 bill.

Budget 2026 for Limited Companies: What Changes for Directors

Budget 2026 for limited company directors: corporation tax and dividend tax unchanged, employer NI 15%, writing-down allowance 12% from April 2027, BADR limit £500,000 from April 2027, 35p mileage above 10,000 miles.

How Much Can a Director Take From a Limited Company Tax-Free? 2026/27

A director with no other income can take £13,070 in 2026/27 with no personal tax: £12,570 salary plus a £500 dividend. What the company still pays, and the cheapest way to do it.

Tax-Free Benefits a Limited Company Can Give Its Director (2026/27)

What your company can pay for you with no tax or NI in 2026/27: £50 trivial benefits (£300 cap for directors), the £150 party, one phone, homeworking £6 a week, mileage at 55p and health checks.

VAT Registration for a Limited Company 2026/27: £90,000 Threshold and Corporation Tax

When a limited company must register for VAT (£90,000 over any 12 months), the 30-day deadline, voluntary registration, the Flat Rate Scheme and how VAT changes the Corporation Tax bill.