On £60,000 company profit, the director takes home ££46,091/year (££3,841/month) in 2026/27, paying ££8,796 corporation tax and ££13,909 in total across all taxes. Assumes £12,570 director salary, England/Wales rates, all post-tax profit taken as dividends.
| Item | Amount | Note |
|---|---|---|
| Gross company profit | £60,000 | |
| Director salary | −£12,570 | deductible |
| Employer NI | −£1,136 | 15% on salary above £5,000 |
| Taxable profit | £46,294 | |
| Corporation tax | −£8,796 | 19.0% effective |
| Post-tax profit (= dividends available) | £37,499 | |
| Director salary (personal) | £12,570 | |
| Personal tax on salary | −£0 IT / −£0 NI | |
| Dividends received | £37,499 | |
| Dividend tax | −£3,977 | |
| Director take-home | £46,091/yr | £3,841/mo |
Assumes England/Wales tax rates, £12,570 director salary, no pension contributions, no other personal income, all post-tax profit taken as dividends. Use the full calculator to model your specific position.
Small profits rate applies. Taxable profit of ££46,294 falls below the £50,000 threshold, so the 19% small profits rate applies. No marginal relief calculation is needed.
After deducting a £12,570 director salary and ££1,136 employer NI, taxable profit is ££46,294. Corporation tax on this is ££8,796 at an effective rate of 19.0%. The gross profit of £60,000 is not directly subject to corporation tax — only the amount remaining after allowable deductions.
The standard approach for 2026/27 is a director salary of £12,570 (no income tax, minimal employer NI) with remaining post-tax profit taken as dividends. On £60,000 gross profit, this produces a take-home of ££46,091. Adding company pension contributions can reduce the corporation tax bill and build tax-free savings simultaneously. Use the calculator to model alternatives.
The small profits rate of 19% applies. After deducting salary and employer NI, taxable profit is ££46,294, which is below the £50,000 threshold.
The combined effective rate — employer NI (££1,136), corporation tax (££8,796), income tax on salary (££0), employee NI (££0) and dividend tax (££3,977) — is 23.18% of the £60,000 gross profit. Total tax: ££13,909.
Adjust salary, pension contributions, other income and more in the full calculator.
Open calculator with £60,000 →