Updated for 2026/27

Limited company tax calculator

Enter company profit to see the full tax picture: corporation tax on company profits, then income tax, employer NI and dividend tax on what you extract personally.

Quick answer (2026/27): a UK company pays corporation tax at 19% on profits up to £50,000 and 25% above £250,000, with marginal relief in between. Most sole directors then take a £12,570 salary and the rest as dividends: after the £500 dividend allowance, dividends are taxed at 10.75% in the basic-rate band and 35.75% above £50,270 of total income.

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

Calculator checked against GOV.UK and HMRC rules on (how we check).

Calculate company tax Read the guides
Company profitDirector salaryDividend extractionPersonal take-home
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.
£
£
£47,749 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Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.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

Free check · 2026/27

Turn this into a pay plan for the year

We test every salary for your profit and show the split that leaves you the most, with the Corporation Tax to set aside.

Other income or a pension too?

Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.

Figures reviewed for the 2026/27 tax year. Source: GOV.UK.

About this calculator

Limited company tax calculator: what it covers

This calculator follows money the whole way through a UK limited company for 2026/27: from company profit, through corporation tax, out as a director salary and dividends, and finally into your pocket after personal tax. It is the flagship overview tool, so it shows every layer at once rather than isolating one step. Corporation tax is charged at 19% up to £50,000 of profit, 25% above £250,000, and an effective 26.5% marginal rate in between.1

The key difference from a sole trader calculator is that a company is a separate legal person. Profit is taxed first inside the company, then taxed again when you extract it. A sole trader has one layer of income tax and National Insurance; a company director deals with corporation tax, then income tax on salary, then dividend tax on dividends paid from post-corporation-tax profit.2 That two-stage structure is why the breakdown here is layered.

Reading the output top to bottom: profit reduced by a deductible salary, corporation tax on what remains, then your personal position built from a £12,570 salary plus dividends within the basic-rate band. Each figure feeds the next, so changing the salary changes the corporation tax, the dividend room and the final take-home together.

Worked example

£60,000 company profit, from top to pocket

Take a company with £60,000 of profit before the director is paid, using the standard £12,570 salary and drawing the rest as dividends. Following it through every layer shows how the company stage and the personal stage combine.

Company profit before salary £60,000
Director salary (deductible) £12,570
Employer NI (15% above £5,000) £1,135.50
Taxable profit after salary £46,294.50
Corporation tax (19%) £8,795.95
Dividends available (post-tax profit) £37,498.55
Dividend tax (10.75%, after £500) £3,977.34
Personal take-home £46,091.21

From £60,000 of profit, about £46,091 reaches you personally — an all-in tax cost across company and personal layers of roughly 23%. Because the £46,294.50 of taxable profit stays under £50,000, the whole corporation tax charge is at the 19% small profits rate.

How it works

How the calculator gets from profit to take-home

  1. Start with company profit before the director is paid: sales less running costs, but before your salary, any employer pension contribution and Corporation Tax. Turnover is the wrong figure to enter.
  2. Deduct the salary and the employer NI on it. Employer NI is 15% of salary above £5,000 for the year, and both the salary and the NI are allowable costs, so they reduce the profit that is taxed.3
  3. Charge Corporation Tax on what is left: 19% up to £50,000, 25% from £250,000, and the main rate less marginal relief in between.1
  4. Treat the post-tax profit as the most you can pay as dividends this year. If you enter a smaller dividend, the rest stays in the company as retained cash.
  5. Tax you personally: income tax and employee NI on the salary (none on £12,570), then dividend tax on dividends stacked on top of the salary, after the £500 dividend allowance.25
More worked examples

A small company: £30,000 of profit

A one-person company in its first full year, paying the usual salary and taking everything else as dividends.

Profit before salary £30,000
Salary and employer NI £12,570 + £1,135.50
Taxable profit £16,294.50
Corporation Tax at 19% £3,095.95
Dividends paid £13,198.55
Dividend tax £1,365.09
Take-home £24,403.46

Every layer sits at its lowest rate here, so the all-in tax is 18.7% of profit. All the dividends fall in the basic-rate band.

A larger company: £150,000 of profit

The same structure at five times the profit. Two things change: the company is inside the marginal relief band, and most of the dividends reach the higher rate.

Taxable profit after salary £136,294.50
Corporation Tax (effective rate) £32,368.04 (23.75%)
Dividends paid £103,926.46
Dividend tax (includes the Personal Allowance lost above £100,000) £31,386.67
Take-home £85,109.79
All-in tax 43.3%

Taking every pound out in one year is rarely what a company of this size does. Enter a lower dividend in the calculator to see how much stays in the company and how much dividend tax that defers.

The same company when you also have a job

£60,000 of profit again, but the director also earns £10,000 from a PAYE job. Other income uses the Personal Allowance and basic-rate band before your company pay does.

Take-home with no other income £46,091.21
Income tax on the company salary £0.00 → £2,000.00
Dividend tax £3,977.34 → £6,426.98
Company pay you keep £41,641.57

The company's numbers do not change at all. The extra tax is personal: part of the salary is now taxed at 20% and more of the dividends cross £50,270 into the 35.75% band. Enter other income in the calculator whenever you have any.

Mistakes and edge cases

Mistakes that make the answer wrong

Entering turnover
VAT you collect, materials, software and travel are not profit. Enter profit after running costs, or use the day-rate tab, which deducts expenses for you.
Assuming you must take it all
Dividends are a choice. The default pays out every pound of post-tax profit, which is the most tax you could pay this year, not a requirement.
Ignoring associated companies
If you control another company, the £50,000 and £250,000 limits are shared between them, so more profit is taxed at the higher rates. The calculator assumes no associated companies.
Mixing the two years
Corporation Tax follows the company's accounting period; your salary and dividends follow the 6 April to 5 April tax year. A dividend paid in May belongs to a different personal tax year from one paid in March.
Expecting Scotland to change the company figures
Corporation Tax and dividend tax are the same across the UK. Only income tax on the salary uses Scottish bands, and a £12,570 salary pays none anywhere.
By profit

How much tax at each profit level?

Each row pays a £12,570 salary and takes everything left as dividends. All-in tax adds employer NI, Corporation Tax and dividend tax.

Profit before salaryCorporation TaxDividend taxTake-homeAll-in tax
£30,000£3,096£1,365£24,40318.7%
£50,000£6,896£3,107£38,86222.3%
£75,000£12,493£7,968£53,40428.8%
£100,000£19,118£14,537£65,21034.8%
£150,000£32,368£31,387£85,11043.3%
£250,000£58,868£61,943£128,05448.8%

Leaving profit in the company defers the dividend tax, so your own figures may be lower. Enter a dividend figure in the calculator to see this.

Key figures

  • Corporation Tax is 19% on profits up to £50,000 and 25% from £250,000, for the financial years from 1 April 2026 and 1 April 2027. Budget 2026 Annex A
  • Between those limits marginal relief applies, with a standard fraction of 3/200 in the financial years 2026 and 2027. Budget 2026 Annex A
  • Employer National Insurance is 15% above £5,000 a year for 2026/27 and 2027/28. Budget 2026 Annex A
  • Corporation Tax is due 9 months and 1 day after the end of the accounting period if taxable profits are up to £1.5 million. GOV.UK

Checked 30 October 2026.

Common questions

Limited company tax calculator — FAQs

How is a limited company taxed differently from being a sole trader?
A sole trader pays income tax and National Insurance on all business profit in one go. A limited company pays corporation tax on its profit first (19%, 25%, or a 26.5% marginal rate between £50,000 and £250,000), and you then pay personal tax again only on what you extract as salary or dividends. It is two layers rather than one, which is why the calculator separates the company stage from the personal stage.
What order does the calculation happen in?
Salary is paid and deducted from profit first, because it is a company expense. Corporation tax is then charged on the remaining profit. Dividends are paid from what is left after corporation tax, and personal tax (income tax on salary, dividend tax on dividends) is applied last. The layered breakdown mirrors that order.
Why do dividends come from post-corporation-tax profit?
Dividends are a distribution of profit the company has already earned and paid corporation tax on. They are not a deductible expense like salary. That is why the calculator applies corporation tax before working out how much is available to pay as dividends, and why dividends carry no National Insurance.
Does this replace advice from an accountant?
No. It is an informational tool using 2026/27 rates to show how the layers fit together. It does not account for every personal circumstance, other income, pensions, or company-specific factors, so treat the figures as a guide rather than a recommendation.
How much tax does a limited company pay on £100,000 profit?
With a £12,570 director salary, about £19,118 of Corporation Tax on the £86,294 left after salary and employer NI. If the rest is all taken as dividends, add £14,537 of dividend tax, leaving £65,210 in your hands.
What does this calculator leave out?
VAT, business rates and the cost of running the company are not included. Enter your profit after those costs. It assumes a 12-month accounting period and no associated companies, which would lower the Corporation Tax limits.
Sources & references

Where these figures come from

The rates and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC, GOV.UK or Companies House page in a new tab.

  1. Corporation Tax rates and reliefs www.gov.uk/corporation-tax-rates
  2. Tax on dividends www.gov.uk/tax-on-dividends
  3. Rates and thresholds for employers 2026 to 2027 www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
  4. Running payroll www.gov.uk/running-payroll
  5. Income Tax rates and Personal Allowances www.gov.uk/income-tax-rates
Verified against published UK government guidance.
Power tools

More calculators

Corporation tax calculator 2026/27
The company's bill at 19%, 25% or with marginal relief, and when it is due.
Salary vs dividend calculator 2026/27
Compare taking money as salary or dividends and see which salary leaves you the most.
Director salary calculator 2026/27
£0, £5,000, £9,100 or £12,570: what each salary costs the company and saves you.
Dividend tax calculator 2026/27
Dividend tax on top of your salary, band by band, after the £500 allowance.
Available dividends calculator
How much the company can lawfully pay out after salary, pension and Corporation Tax.
Retained profit calculator 2026/27
What stays in the company when you take less than all the profit, and the tax that defers.
Director take-home pay calculator 2026/27
What reaches your bank account each year and month, and what to set aside for January.
Employer NI calculator for directors 2026/27
Employer NI on a director's salary, and when Employment Allowance cancels it.
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.
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.
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 registration is £156, through software filing only (for example via a formation agent). You can register directly at gov.uk or through a formation agent.

Read next