UK limited company calculator 2026/27, contractor take-home pay
This free limited company tax calculator shows the real take-home pay for a contractor, freelancer or consultant running a one-person limited company in 2026/27. Enter your company profit and the salary and dividends you take, and it works out Corporation Tax, dividend tax, Income Tax and National Insurance, down to the monthly figure. Every rate is based on official HMRC and GOV.UK figures, and you can see exactly how each number is worked out.
How your limited company take-home is calculated
Money leaves a limited company in two stages. First the company pays your salary and the employer National Insurance on it (both tax-deductible), then Corporation Tax on the remaining profit. What is left is paid to you as dividends. Then you personally pay Income Tax and NI on the salary, and dividend tax on the dividends.
| Tax | 2026/27 rate | Notes |
|---|---|---|
| Corporation Tax (small profits) | 19% | Profit up to £50,000 |
| Corporation Tax (marginal) | 26.5% effective | £50,000 to £250,000 |
| Corporation Tax (main rate) | 25% | Profit over £250,000 |
| Dividend allowance | 0% | First £500 of dividends |
| Dividend basic rate | 10.75% | Was 8.75% in 2025/26 |
| Dividend higher rate | 35.75% | Was 33.75% in 2025/26 |
| Dividend additional rate | 39.35% | Unchanged |
The dividend basic and higher rates rose by 2 percentage points from 6 April 2026 (Autumn Budget 2025), so a 2026/27 figure is higher than the same profit was in 2025/26. Dividends are taxed as the top slice of your income, stacked on top of your salary.
Take-home by company profit (2026/27)
A quick reference for a one-person company in England taking a £12,570 director salary, with the rest drawn as dividends. Enter your own figures above for an exact breakdown.
| Profit before salary | Take-home (year) | Take-home (month) | You keep |
|---|---|---|---|
| £30,000 | £24,403 | £2,034 | 81% |
| £50,000 | £38,862 | £3,238 | 78% |
| £60,000 | £46,091 | £3,841 | 77% |
| £80,000 | £55,765 | £4,647 | 70% |
| £100,000 | £65,210 | £5,434 | 65% |
| £150,000 | £85,110 | £7,092 | 57% |
Salary vs dividends: the contractor strategy
A small salary plus dividends is the usual way to draw money from a one-person company. A £12,570 salary uses your full Personal Allowance and protects your State Pension record, leaving a little employer NI to pay. A £5,000 salary avoids employer NI entirely. Dividends carry no National Insurance, which is the main reason a company can beat trading as a sole trader, though the gap narrowed when dividend tax rose in April 2026. Try both salary levels above to see the difference.
Employee instead of director? Use the UK salary calculator. Self-employed without a company? Use the sole trader & freelance tax calculator.
Frequently asked questions
- Is this limited company tax calculator free?
- Yes. The limited company and contractor calculator is completely free, with no sign-up required. Enter your company's annual profit and director's salary and it shows your take-home pay after Corporation Tax, dividend tax, and National Insurance for the 2026/27 tax year, all based on official HMRC and GOV.UK rates.
- How is limited company take-home pay calculated?
- Start with your company profit before salary. Take off your director's salary and the employer National Insurance on it (both are tax-deductible costs), then charge Corporation Tax on what remains. The post-tax profit is paid to you as dividends. You then pay Income Tax and National Insurance on the salary, and dividend tax on the dividends. Your take-home is your net salary plus your net dividends.
- What are the dividend tax rates for 2026/27?
- For 2026/27 the first £500 of dividends is tax-free, then dividends are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band, and 39.35% in the additional-rate band. The basic and higher rates rose by 2 percentage points from 6 April 2026 (Autumn Budget 2025); they were 8.75% and 33.75% in 2025/26. Dividends are taxed as the top slice of your income, on top of your salary.
- How much salary should a limited company director take?
- Most one-person companies take a small salary and the rest as dividends. A £12,570 salary uses your full tax-free Personal Allowance and keeps your State Pension record going, with a little employer National Insurance to pay (15% above the £5,000 secondary threshold). A £5,000 salary avoids employer NI entirely. Both are lawful; the calculator lets you compare them instantly. A single director with no other employees cannot claim the £10,500 Employment Allowance.
- What is the Corporation Tax rate for 2026/27?
- Corporation Tax is 19% on company profits up to £50,000 and 25% on profits over £250,000. Between those figures, Marginal Relief applies, so the slice of profit in that band is effectively taxed at 26.5%. These rates and thresholds are unchanged for the financial year starting 1 April 2026.
- Is a limited company better than being a sole trader?
- It depends on your profit and circumstances. A limited company can still be more tax-efficient than being a sole trader, mainly because dividends carry no National Insurance, but the gap has narrowed since dividend tax rose in April 2026. Running a company also brings extra admin and accounting costs. Compare your own numbers with this calculator and the sole trader calculator, and check with an accountant.