Rule-based calculation · limited company · 2026/27
What a company owner keeps
Two layers of tax: the company pays corporation tax on its profit after your salary, then you pay income tax, National Insurance and dividend tax on what you take. Both are worked out from the HMRC rules for 2026/27. Sole traders use the self-employed calculator instead.
What you keep personally · England, 2026/27
£4,647 a month
£55,765 a year from £80,000 of company profit
All taxes together, company and personal, take 30.3% of the profit: corporation tax £13,818, employer National Insurance £1,136, income tax £0, employee National Insurance £0 and dividend tax £9,282.
The company
| Item | A year | How it is worked out |
|---|---|---|
| Profit before your salary | £80,000.00 | As entered. |
| Your salary | −£12,570.00 | A deductible cost for the company. |
| Employer National Insurance | −£1,135.50 | 15% of salary above £5,000, before any Employment Allowance. |
| Taxable profit | £66,294.50 | Profit less salary and employer National Insurance. |
| Corporation tax | −£13,818.04 | 19% up to £50,000, 25% from £250,000, marginal relief between (£2,756 here, giving 20.8% overall). |
| Available to distribute | £52,476.46 | Taxable profit less corporation tax. |
| Dividends taken | £52,476.46 | Everything available, as no figure was entered. |
| Retained in the company | £0.00 | Not taxed personally until taken. |
You
| Item | A year | How it is worked out |
|---|---|---|
| Salary | £12,570.00 | Personal allowance £12,570 is set against it first. |
| Income tax on salary | −£0.00 | England, Wales and Northern Ireland rates on salary above the allowance. |
| Employee National Insurance | −£0.00 | 8% of salary between £12,570 and £50,270, 2% above. |
| Dividends | £52,476.46 | Sit on top of salary in the UK-wide bands; dividend rates are not devolved. |
| Dividend tax | −£9,281.58 | The first £500 is the dividend allowance at nil; then 10.75%, 35.75% and 39.35% by band. |
| What you keep | £55,764.87 | Salary and dividends less personal tax and National Insurance. |
| Dividend band | Rate | Dividends taxed | Tax |
|---|---|---|---|
| Basic rate | 10.75% | £37,200 | £3,999.00 |
| Higher rate | 35.75% | £14,776 | £5,282.58 |
What this does not cover
The Employment Allowance (not available to companies whose only employee is a director), associated companies reducing the corporation tax limits, accounting periods that do not match the tax year, pension contributions by the company, the High Income Child Benefit Charge, student loans and IR35. None of this is advice on how to pay yourself.
Check the rules
Every rate and threshold is recorded in the registry with the page it was taken from on 2026-09-03.
- Corporation tax
- https://www.gov.uk/corporation-tax-rates
- Marginal relief
- https://www.gov.uk/guidance/corporation-tax-marginal-relief
- Standard fraction (3/200)
- https://www.legislation.gov.uk/ukpga/2021/26/section/7
- Dividend tax
- https://www.gov.uk/tax-on-dividends
- Income tax
- https://www.gov.uk/income-tax-rates
- National Insurance
- https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
- Tax year
- 2026/27, 2026-04-06 to 2027-04-05