LimitedCompanyTaxCalculator
Updated for 2026/27

Retained profit calculator 2026/27

Not all profit needs to be extracted. This shows what stays in the company after salary, employer NI, corporation tax and dividends, the retained cash that can be reinvested or extracted later.

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

Calculate company tax Read the guides
Retained company cashExtraction choicesCorp tax firstFuture flexibility
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.
£
£
£47,874 personal take-home / year £3,989/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,989
Total tax
£18,325
Effective rate
24.4%
Personal take-home£47,874
Dividend tax£4,696
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£4,696.25
Retained company cash£8,801.46
Personal take-home£47,873.75
Effective tax rate24.43%
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Quick answer

See how much post-tax profit stays in your limited company after salary and dividend extraction 2026/27. Model different extraction levels and retained cash.

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 (last updated July 2026). Source: GOV.UK.

About this calculator

Retained profit calculator 2026/27: what it covers

This calculator shows the profit that stays inside the company once corporation tax has been charged and any dividends have been paid out. It starts from taxable profit, removes the corporation tax due at 19%, 25% or the 26.5% marginal band rate, and then subtracts the dividends drawn, leaving the retained figure that rolls forward as reserves.

Retained profit has already had corporation tax applied, but it has not yet been taxed in anyone's hands personally. Directors often choose to leave profit in the company rather than extract everything each year — to fund reinvestment, to smooth dividends across good and lean years so they stay inside lower dividend bands, or to make employer pension contributions.

The result is a running measure of accumulated, undistributed profit. It is money the company owns rather than money you have received, and extracting it later still triggers personal tax at that point, so the retained figure is best read as reserves available for future decisions rather than take-home pay.

Common questions

Retained profit calculator 2026/27 — FAQs

Has retained profit already been taxed?
It has had corporation tax charged on it — at 19%, 25% or the 26.5% marginal rate depending on profit level — but no personal tax has been paid. Personal tax only arises later, when the money is taken out as dividends or salary, or is dealt with when the company is wound up.
Why leave profit in the company instead of taking it out?
Common reasons are reinvesting in the business, keeping funds available for cash flow, and smoothing dividends across years so drawings stay within the basic-rate dividend band rather than spilling into the 35.75% higher rate. Retained profit can also be routed into an employer pension contribution, which is an allowable expense.
How is retained profit taxed when I finally take it out?
If extracted as dividends it is taxed personally at 10.75%, 35.75% or 39.35% depending on your income band, after the £500 dividend allowance. There is no further corporation tax to pay on money already taxed, but the personal dividend charge applies in the year you draw it.
Is retained profit the same as cash in the bank?
No. Retained profit is an accounting measure of accumulated, undistributed profit, while the bank balance also reflects unpaid bills, tax owed and money tied up elsewhere. A company can show healthy retained profit yet hold much less spare cash, so check both before drawing a dividend.
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Practical guides

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Director Loan Accounts Explained: Tax Implications for 2026/27
A director loan account (DLA) tracks money owed between a director and their company. This guide covers how DLAs work, when they attract tax charges, and how to manage them.
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.
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Use the PAYE salary tool when you want a pure employee baseline outside the company structure question.
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Useful for isolating employer NI and payroll cost effects when director salary is the main planning variable.
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Helpful once business take-home is being translated into a housing budget and buying costs plan.
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 - deposits up to £85,000 are FSCS protected. 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 digital registration is £156. You can register directly at gov.uk or through a formation agent.