This calculator applies published HMRC and GOV.UK rates to estimate the tax position of a UK limited company director. The model covers corporation tax, director salary, employer NI, company pension contributions, dividend distribution and personal tax. All results are for planning purposes only.
Updated 2026/27 · LimitedCompanyTaxCalculator.co.uk · Editorial standards · Methodology
The calculator supports tax years 2025/26 and 2026/27, defaulting to the current active tax year. Company profit is entered as profit before director salary, employer NI and corporation tax. The model then deducts these in sequence to arrive at post-tax distributable profit.
Thresholds, allowances and rates are those published by HMRC for the selected tax year and are reviewed at each Budget. Source links to the relevant GOV.UK guidance are provided throughout.
For 2026/27: small profits rate 19% on profits at or below £50,000. Main rate 25% on profits above £250,000. Marginal relief applies between £50,000 and £250,000 using the formula: (profits × 25%) − (3/200 × (£250,000 − profits)).
Corporation tax is calculated on company profit after deducting director salary, employer NI and company pension contributions. Dividends are not a company expense and do not reduce taxable profit.
The calculator does not apply associated company threshold adjustments. If you have associated companies, the £50,000 and £250,000 thresholds should be divided by the number of associated companies before using the results as a planning guide.
Director salary is deducted from company profit before corporation tax. Employer NI at 15% applies to salary above the secondary threshold of £5,000. Employer NI is itself a company expense and is deducted before corporation tax alongside the salary.
On the personal side, employee NI at 8% applies to salary between £12,570 and £50,270, and 2% above £50,270. Income tax is calculated at personal income tax rates (England/Wales/NI or Scotland, depending on region selected) on salary plus dividends plus other income, after personal allowance.
The personal allowance is £12,570 for 2026/27 and is tapered at £1 for every £2 of income above £100,000.
Dividends are paid from post-corporation-tax company profit. The available dividend amount is company profit minus director salary, employer NI, company pension contribution and corporation tax. If dividends entered exceed available distributable profit, the model caps distributions at available profit.
Dividend tax for 2026/27: £500 dividend allowance. Above that, 10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate). The applicable rate depends on where dividends fall in the director's personal income tax bands, after salary and other income are counted first.
Company pension contributions are deducted from company profit before corporation tax. They do not appear in personal income for tax purposes and are not subject to NI.
The calculator does not model the pension annual allowance. Contributions above £60,000 may be subject to a tax charge not reflected in the estimate. For contributions near the allowance, consult an adviser.
Retained company cash is company profit after all deductions: salary, employer NI, company pension, corporation tax and chosen dividends. If dividends are set below available distributable profit, the difference appears as retained cash. This figure represents current-period modelling only and does not include accumulated prior-period reserves.
Associated company threshold adjustments. Employment Allowance (not applicable for sole director/employee companies where the director is the only employee). VAT. Capital gains. Benefits in kind and the P11D charge. The full effects of income tapering above £100,000 in all edge cases. The annual pension allowance charge. Salary sacrifice arrangements.
Results should not be used as the basis for a company tax return, remuneration policy, formal professional advice or compliance decision. For filing, consult a qualified accountant.
No. It is a planning calculator for structure decisions, extraction modelling and comparison. For a company tax return or formal remuneration planning, use a qualified accountant.
Personal take-home depends on the salary and dividends you choose to extract, not on total company profit. If salary and dividends stay fixed, higher company profit increases retained company cash, it does not automatically increase personal income. To take more personally, increase the dividends figure.
Yes. Marginal relief is applied automatically when company profit is between £50,000 and £250,000. The formula used is the HMRC standard formula: (profits × 25%) − (3/200 × (£250,000 − profits)).
The limited company tax calculator turns this guidance into a concrete estimate for corporation tax, dividends and personal take-home, based on 2026/27 HMRC rates.