On £65,000 company profit, the director takes home ££48,806/year (££4,067/month) in 2026/27, paying ££9,843 corporation tax and ££16,194 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 | £65,000 | |
| Director salary | −£12,570 | deductible |
| Employer NI | −£1,136 | 15% on salary above £5,000 |
| Taxable profit | £51,294 | |
| Corporation tax | −£9,843 | 19.19% effective |
| Post-tax profit (= dividends available) | £41,451 | |
| Director salary (personal) | £12,570 | |
| Personal tax on salary | −£0 IT / −£0 NI | |
| Dividends received | £41,451 | |
| Dividend tax | −£5,215 | |
| Director take-home | £48,806/yr | £4,067/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.
Marginal relief applies. Taxable profit of ££51,294 falls between the £50,000 and £250,000 thresholds. The effective corporation tax rate is 19.19% — between the 19% small profits rate and 25% main rate. Each additional £1 of taxable profit in this band is taxed at an effective marginal rate of 26.5p.
After deducting a £12,570 director salary and ££1,136 employer NI, taxable profit is ££51,294. Corporation tax on this is ££9,843 at an effective rate of 19.19%. The gross profit of £65,000 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 £65,000 gross profit, this produces a take-home of ££48,806. Adding company pension contributions can reduce the corporation tax bill and build tax-free savings simultaneously. Use the calculator to model alternatives.
Marginal relief applies. Taxable profit of ££51,294 falls between £50,000 and £250,000. The effective rate of 19.19% is blended between 19% and 25% using the marginal relief formula.
The combined effective rate — employer NI (££1,136), corporation tax (££9,843), income tax on salary (££0), employee NI (££0) and dividend tax (££5,215) — is 24.91% of the £65,000 gross profit. Total tax: ££16,194.
Adjust salary, pension contributions, other income and more in the full calculator.
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