UK Ltd Co / Director Tax Scenario Calculator

England • 2024-2027 Tax Years

Assumes director is under State Pension age, NI category A, and this is their only income (salary + dividends). Employment Allowance is only available if eligible (e.g. not available where the only employee is a director).

Helps you recognise scenarios in the table.

Definitions: PBIT = income − expenses − salary − employer NI (after EA) − pension. Retained profit = post-CT profit − dividends. Closing reserves = opening reserves + retained profit. Take home = salary + dividends − EE NI − income tax − dividend tax. Effective tax rate = (CT + ER NI payable + EE NI + personal tax) ÷ (income − expenses).

Corporation Tax Rates

Profit Band 2024/25 2025/26 2026/27
£0 – £50,000 19% 19% 19%
£50,001 – £250,000 19–25%* 19–25%* 19–25%*
£250,001+ 25% 25% 25%

*Marginal relief applies between £50k–£250k. Effective marginal rate is 26.5% in this band.

Income Tax Rates (England)

Band Taxable Income 2024/25 2025/26 2026/27
Personal Allowance £0 – £12,570 0% 0% 0%
Basic rate £12,571 – £50,270 20% 20% 20%
Higher rate £50,271 – £125,140 40% 40% 40%
Additional rate £125,141+ 45% 45% 45%

PA reduces by £1 for every £2 earned over £100k.

Dividend Tax Rates

Band 2024/25 2025/26 2026/27
Dividend Allowance £500 £500 £500
Basic rate 8.75% 8.75% 10.75%
Higher rate 33.75% 33.75% 35.75%
Additional rate 39.35% 39.35% 39.35%

Dividend rates apply after the tax-free dividend allowance. Dividends use up the basic/higher rate bands after other income.

National Insurance Thresholds & Rates

Threshold / Rate 2024/25 2025/26 2026/27
Primary Threshold (PT) – Employee NI starts £12,570 £12,570 £12,570
Upper Earnings Limit (UEL) £50,270 £50,270 £50,270
Secondary Threshold (ST) – Employer NI starts £9,100 £5,000 £5,000
Employee NI rate (PT–UEL) 8% 8% 8%
Employee NI rate (above UEL) 2% 2% 2%
Employer NI rate 13.8% 15% 15%
Employment Allowance (max) £5,000 £10,500 £10,500

Employment Allowance not available where only employee is a director. NI Category A assumed.