Limited Company Tax
Every tax a UK limited company and its directors pay in 2026/27, with free calculators for each one, this year's rates and the deadlines that matter.
- 19%–25%corporation tax
- 15%employer NI
- 10.75%basic dividend tax
If the company keeps the profit
- Corporation tax
- –
- Effective rate
- –
- Profit after tax
- –
If you take it all out as a director
- Best salary
- –
- Your take-home pay
- –
- Total tax rate
- –
Limited company calculators
Five free calculators that cover the taxes between your company's profit and your own bank account. Each one shows its working and uses HMRC's 2026/27 rates.
Corporation tax calculator
Your company's tax bill, with marginal relief, associated companies, straddling periods and payment dates.
Best salarySalary vs dividend calculator
The mix of salary and dividends that leaves a director the most after every tax.
10.75% basicDividend tax calculator
Tax on the dividends you take, with your salary, savings and the £500 allowance.
15% above £5,000Employer NI calculator
Employer National Insurance, the Employment Allowance, pension and the true cost of an employee.
3/200 fractionMarginal relief calculator
Marginal relief for profits between £50,000 and £250,000, with the formula worked through.
Guides: dividend tax rates and the dividend allowance · the Employment Allowance · all guides
What taxes does a limited company pay?
A limited company is taxed separately from the people who own and run it. The company pays tax on its profits and on the salaries it pays. Directors and shareholders then pay personal tax on the salary and dividends they take out.
| Tax | Who pays | 2026/27 rate | Work it out |
|---|---|---|---|
| Corporation tax | The company, on its taxable profit | 19% up to £50,000, 25% over £250,000, marginal relief between | Corporation tax calculator |
| Employer National Insurance | The company, on salaries | 15% above £5,000 a year per employee | Employer NI calculator |
| Income tax and employee NI | Directors and staff, through PAYE | 20% / 40% / 45% income tax; 8% and 2% NI | Salary vs dividend calculator |
| Dividend tax | Shareholders, through Self Assessment | 10.75% / 35.75% / 39.35% after a £500 allowance | Dividend tax calculator · rates guide |
| VAT | The company collects it from customers | 20% standard rate, once taxable turnover passes £90,000 | – |
| Business rates | The company, if it has business premises | Set by the property's rateable value | – |
How much tax does a limited company pay?
Corporation tax and the total tax when a sole director takes all the profit out, using the best salary and the rest as dividends. No associated companies, no Employment Allowance and no other income.
| Company profit | Corporation tax | Rate | Best salary | Director's take-home | Total tax rate |
|---|---|---|---|---|---|
| £30,000 | £5,700 | 19% | £12,570 | £24,403.45 | 18.66% |
| £50,000 | £9,500 | 19% | £12,570 | £38,861.95 | 22.28% |
| £75,000 | £16,125 | 21.5% | £12,570 | £53,403.69 | 28.8% |
| £100,000 | £22,750 | 22.75% | £12,570 | £65,209.63 | 34.79% |
| £150,000 | £36,000 | 24% | £5,000 | £85,321.17 | 43.12% |
| £250,000 | £62,500 | 25% | £174,566 | £129,065.94 | 48.37% |
Corporation tax is on the whole profit if the company keeps it. The take-home and total tax rate assume all profit is paid out in the same tax year, including corporation tax, both kinds of National Insurance, income tax and dividend tax.
Limited company tax rates 2026/27
For the company
| Corporation tax, profits up to £50,000 | 19% |
| Corporation tax, profits over £250,000 | 25% |
| Effective rate on profit between the limits | 26.5% |
| Employer NI above £5,000 | 15% |
| Employment Allowance | £10,500 |
| VAT registration threshold | £90,000 |
For directors and shareholders
| Personal allowance | £12,570 |
| Dividend allowance | £500 |
| Dividend tax: basic / higher / additional | 10.75% / 35.75% / 39.35% |
| Income tax: basic / higher / additional | 20% / 40% / 45% |
| Employee NI between £12,570 and £50,270 / above | 8% / 2% |
| Higher rate starts at | £50,270 |
Rates for 2026/27 (6 April 2026 to 5 April 2027) and financial year 2026 (1 April 2026 to 31 March 2027) for corporation tax. The Budget on 28 October 2026 kept the corporation tax, National Insurance, income tax and dividend rates the same for 2027/28.
Key limited company deadlines
| What | When |
|---|---|
| Pay corporation tax | 9 months and 1 day after the accounting period ends |
| File the Company Tax Return (CT600) | 12 months after the accounting period ends |
| File annual accounts with Companies House | 9 months after the company's year end |
| Confirmation statement | At least once every 12 months |
| Pay PAYE and National Insurance | 22nd of each month (19th by post) |
| Directors' Self Assessment and tax due | 31 January after the tax year ends |
| P11D for benefits in kind | 6 July after the tax year ends |
A company's first accounts have a longer deadline: 21 months after it was set up.
How directors pay themselves
Most directors of small companies take a salary of £12,570, the personal allowance, and the rest of their pay as dividends. The salary is free of income tax and employee NI and reduces corporation tax. Dividends have no National Insurance at all.
On £60,000 of profit, that mix leaves a sole director with £46,091.20 after every tax. The best mix changes once your income passes £100,000, or if the company can claim the Employment Allowance.
Find your best salary and dividend mix →
Taking on staff
An employee costs more than their salary. On £30,000, employer NI and the minimum pension bring the cost to £34,462.80 a year. Work out the true cost of an employee.
Ways to reduce your company's tax
Claim every allowable expense
Costs incurred wholly for the business come off profit before corporation tax, including the use of your home as an office and business mileage.
Use capital allowances
The Annual Investment Allowance gives full relief on up to £1 million a year of qualifying equipment and machinery in the year you buy it.
Pay into a pension
Employer pension contributions come off profit before corporation tax and have no National Insurance, so they often beat salary and dividends.
Get the salary right
A £12,570 salary usually beats £5,000 once the corporation tax saving is counted. Check your own figures first.
Watch marginal relief
Profit between £50,000 and £250,000 is taxed at an effective 26.5%, so expenses and pension contributions save the most there.
Plan before the year end
Decisions about pay, pensions and purchases need making before your company's year end and 5 April. Try the figures first.
Frequently asked questions
Quick answers about how limited companies are taxed.
How much tax does a limited company pay?
Corporation tax of 19% on profits up to £50,000, 25% on profits over £250,000, and a rate in between with marginal relief. On £100,000 of profit that's £22,750. The company also pays 15% employer National Insurance on salaries above £5,000, and collects VAT if it's registered.
What taxes does a limited company pay?
Corporation tax on its profits, employer National Insurance on salaries, and VAT once taxable turnover passes £90,000 (or earlier if it registers voluntarily). It runs PAYE for income tax and employee NI on salaries. Directors and shareholders pay their own income tax and dividend tax personally, and companies with premises may pay business rates.
What are the limited company tax rates for 2026/27?
Corporation tax 19% to 25%, employer NI 15% above £5,000, employee NI 8% and 2%, and dividend tax of 10.75%, 35.75% and 39.35% after a £500 allowance. The personal allowance is £12,570.
How much can I take home from my limited company?
It depends on the profit. On £60,000 of profit, a sole director paying a £12,570 salary and the rest as dividends takes home £46,091.20 after corporation tax, National Insurance, income tax and dividend tax. Our salary vs dividend calculator works it out for any profit.
When does a limited company pay corporation tax?
Nine months and one day after the end of its accounting period, for companies with profits up to £1.5 million. The Company Tax Return (CT600) is due 12 months after the period ends. Very large companies pay in quarterly instalments.
Is a limited company more tax-efficient than being a sole trader?
Often, once profits are above roughly £30,000 to £40,000 a year, because dividends have no National Insurance and corporation tax starts at 19%. Below that the extra costs of running a company, such as accounts and payroll, can outweigh the saving. Compare your own figures before deciding.
Do I need an accountant for a limited company?
It isn't a legal requirement, but most directors use one. A company must file annual accounts with Companies House, a Company Tax Return with HMRC, run payroll if it pays salaries, and keep records for six years. Mistakes can lead to penalties and interest.
Are these limited company calculators free?
Yes. Every calculator here is free, needs no sign-up and shows its working. They use HMRC's published rates and are tested against published worked examples on our methodology page. They're independent and not affiliated with HMRC.
Software engineer with 10 years of experience, including building loan management software for a UK alternative lender.
Last updated 3 November 2026 · Rates checked against gov.uk on 3 November 2026 · LinkedIn (opens in new tab)
- Corporation Tax rates – gov.uk (opens in new tab)
- Rates and thresholds for employers 2026 to 2027 – gov.uk (opens in new tab)
- Tax on dividends – gov.uk (opens in new tab)
- Running a limited company – gov.uk (opens in new tab)
- VAT registration – gov.uk (opens in new tab)
These pages give estimates and general information, not tax advice. Business Tax Calc is independent and not affiliated with HMRC. See our methodology for how calculations are made and tested.