Limited company tax calculator 2026/27
For a single-director company: see your Corporation Tax, the dividends you can pay yourself, the dividend tax, and your director’s take-home for 2026/27. Adjust your salary to see the effect.
£12,570 (the Personal Allowance) is a common choice.
2026/27. Single director, no other employees (no Employment Allowance).
From £80,000 revenue
2026/27- Director’s salary
- £12,570
- Employer NI on salary
- −£1,136
- Company profit
- £66,295
- Corporation Tax
- −£13,818
- Dividends paid
- £52,476
- Dividend tax
- −£9,282
Director’s take-home
salary + dividends, after all tax
£55,765
You keep 70% of revenue. The rest is Corporation Tax, employer NI and dividend tax.
Verified · 2026/2721 June 2026
How this was calculated
From your revenue we take the director’s salary, the employer National Insurance on it (15% above £5,000) and any expenses to reach the company’s profit. Corporation Tax (19% to 25% with Marginal Relief) is charged on that profit, and the remainder is available as dividends. We then tax you personally: Income Tax and employee NI on the salary, and dividend tax (after the £500 allowance, at 10.75%/35.75%/39.35%) on the dividends stacked on top. Rates are traced to dated gov.uk sources for 2026/27.
The full method and every source is on our methodology page.
Built & maintained by the Pay Packet team · methodology sourced from HMRC · last reviewed 21 June 2026. About our figures →
How a small company is taxed
A limited company pays tax in two stages. First the company pays Corporation Tax on its profit — 19% up to £50,000, then a marginal band up to 25% at £250,000. Then you pay personal tax on what you take out: a salary (taxed like any wage) and dividends from the after-tax profit, taxed at 10.75%, 35.75% or 39.35% after a £500 allowance.
The usual play for a one-person company is a modest salary — often £12,570 — plus dividends, because dividends escape National Insurance. Note two 2026/27 frictions: a single-director company cannot claim the Employment Allowance, so 15% employer NI bites on salary above £5,000; and dividend rates rose 2 points in April 2026. Try different salary figures above to see the trade-off.
Deciding whether to incorporate at all? Compare with staying self-employed using the sole trader vs limited company calculator. Just want the dividend tax? Use the dividend tax calculator. Contracting through an agency? The umbrella vs limited and IR35 calculators handle that case.
Rates from gov.uk: Corporation Tax, dividends and the Employment Allowance rules.
Limited company tax questions
- How is a limited company taxed?
- The company pays Corporation Tax on its profit — 19% up to £50,000, rising to 25% by £250,000 with Marginal Relief in between. You then take money out as a director’s salary (usually around the £12,570 Personal Allowance) and dividends from the after-tax profit. The salary and dividends are taxed on you personally; the dividends carry dividend tax after a £500 tax-free allowance.
- What is the most tax-efficient director’s salary?
- Many one-person companies set a salary at the £12,570 Personal Allowance: it is large enough to be a deductible cost and to count for the State Pension, but small enough that little or no Income Tax and employee NI arise. A one-person company cannot claim the Employment Allowance, so 15% employer NI applies above the £5,000 threshold — which is why some directors set a slightly lower salary. This calculator lets you try different figures.
- How much dividend tax will I pay?
- After a £500 tax-free dividend allowance, dividends are taxed at 10.75% within the basic-rate band, 35.75% in the higher-rate band and 39.35% above — for 2026/27 (the basic and higher rates rose 2 points in April 2026). Dividends sit on top of your salary, so the rate depends on your total income.
- Does this assume I take all the profit out?
- Yes — it assumes you pay yourself the chosen salary and take all remaining post-Corporation-Tax profit as dividends in the same year. If you retain profit in the company, your personal tax is lower now but the money stays in the business. It also assumes a single director with no other employees and no extra reliefs.
An estimate for the 2026/27 tax year — guidance, not personal tax or accountancy advice. It assumes a single director taking all post-tax profit as dividends, no other employees and no other income or reliefs. Real outcomes depend on retained profit, pensions and your accountant’s advice. Check gov.uk/HMRC.