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).
| Scenario | Year | Income | Expenses | Salary | Dividends | Pension | ER NI (gross) | EA used | ER NI payable | EE NI | Income tax | Dividend tax | Personal tax | PBIT | Corp Tax | Profit after CT | Retained | Distributable | Closing reserves | Take home | Total tax | Effective rate |
|---|
Add a scenario above to compare tax calculations.
| 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.
| Band | Taxable Income | Income Tax | Dividends |
|---|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% | 0% |
| Basic rate | £12,571 – £50,270 | 20% | 8.75% |
| Higher rate | £50,271 – £125,140 | 40% | 33.75% |
| Additional rate | £125,141+ | 45% | 39.35% |
PA reduces by £1 for every £2 earned over £100k. Dividend allowance: £500/year. 2026/27 dividend rates: 10.75% / 35.75% / 39.35%.
| 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.