Limited Company Tax Calculator UK 2026/27
See what you really take home from your own company: salary, corporation tax, dividends and dividend tax in one place, side by side with the sole trader figure.
More options
| Company profit | £60,000 |
|---|---|
| Your salary | £12,570 |
| Employer NI | £1,135.50 |
| Corporation tax (19% small profits rate) | £8,795.96 |
| Dividends paid to you | £37,498.54 |
| Dividend tax | £3,977.34 |
| Take-home | £46,091 |
Compared with a sole trader
| Sole trader take-home on £60,000 profit | £46,111 |
|---|---|
| Sole trader is ahead by | £20 |
Salary options
| £12,570 Personal Allowance (best) | £46,091 |
|---|---|
| £6,708 Lower Earnings Limit | £45,530 |
| £5,000 Secondary threshold | £45,294 |
- Assumes all profit after corporation tax is paid out as dividends in the same tax year, and no other income.
- The gap is before the extra running costs of a company, such as an accountant, annual filings and a business bank account.
How a director gets paid
Many one-person companies pay a small salary and take the rest as dividends. The salary is a business cost, so it cuts corporation tax. Dividends are paid from profit after corporation tax and are taxed at 10.75% (basic rate), 35.75% (higher rate) or 39.35% (additional rate) in 2026/27.
The best director salary for 2026/27
For a company with one director and no other staff, £12,570 is usually best. Compared with a £5,000 salary it costs £1,135.50 of employer NI, but the corporation tax saved is larger at every rate. At £60,000 profit you keep £46,091.20 on a £12,570 salary against £45,293.71 on £5,000, an extra £797.49 a year. A salary of at least £6,708 also earns a State Pension qualifying year.
Corporation tax 2026/27
Profit up to £50,000 is taxed at 19%, profit from £250,000 at 25%. In between, marginal relief gives an effective 26.5% on the slice above £50,000. Associated companies split these limits between them.
Limited company or sole trader?
Since the dividend rates rose in April 2026, paying all profit out of a company leaves less than trading as a sole trader at every level below (take-home per year, the higher one in bold):
| Profit | Sole trader | Limited company |
|---|---|---|
| £30,000 | £25,468 | £24,403 |
| £50,000 | £40,268 | £38,862 |
| £60,000 | £46,111 | £46,091 |
| £80,000 | £57,711 | £55,765 |
| £100,000 | £69,311 | £65,210 |
| £150,000 | £92,040 | £85,110 |
A company still makes sense when you can leave profit in it, want employer pension contributions, need limited liability, or your clients insist on it. Read the sole trader vs limited company guide for the full picture.
Frequently asked questions
Can I claim Employment Allowance as a sole director?
No. If the director is the only employee paid above the £5,000 secondary threshold, the company cannot claim the £10,500 Employment Allowance.
When is corporation tax due?
For most small companies, 9 months and 1 day after the end of the accounting period. The return is due 12 months after the period ends.
Does this include running costs?
Enter profit after business costs. The comparison does not deduct the extra costs of running a company, such as an accountant and annual filings.
Sources: Finance Act 2025 sections 13 and 14, Finance Act 2026 section 4, CTA 2010 sections 18A to 18E, gov.uk Rates and thresholds for employers 2026 to 2027. General information, not tax advice.