United Kingdom Private limited company (Ltd) tax calculator 2026
A UK limited company pays Corporation Tax at 19% on profits up to £50,000 and 25% above £250,000, with marginal relief tapering the rate in between. Profits taken as dividends are then taxed personally at 8.75% / 33.75% / 39.35% (the basic rate rises to 10.75% from 6 April 2026).
This calculator estimates the Corporation Tax a UK private limited company (Ltd) owes on its taxable profits for 2026, and shows the dividend tax due when you extract those profits as a shareholder.
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Result
United Kingdom Private limited company (Ltd) tax rates 2026
| Band or item | Rate |
|---|---|
| Corporate tax: Up to £50,000 | 19% |
| Corporate tax: Over £50,000 | 25% |
| Dividend tax (on distribution) | 8.75% |
Source: www.gov.uk
How is Corporation Tax calculated for a UK Ltd?
A private limited company pays Corporation Tax on its taxable profit, which is trading income plus other gains after allowable business expenses and capital allowances. There are two rates for 2026:
- Small profits rate 19% on profits up to £50,000.
- Main rate 25% where profits reach £250,000 or more.
Between £50,000 and £250,000, HMRC applies marginal relief, which gradually blends the 19% and 25% rates so the effective rate rises smoothly across that band. This calculator uses a simplified two-band split (19% on the first £50,000, 25% on the rest) and does not model marginal relief, so figures for profits inside the £50,000 to £250,000 range are an approximation. The £50,000 and £250,000 thresholds are also reduced if the company has associated companies.
Dividend tax when you take profits out
Corporation Tax is charged at the company level. When directors and shareholders draw the post-tax profit as dividends, that dividend is taxed again on their personal Self Assessment return. The dividend tax rates depend on your Income Tax band:
- Basic rate: 8.75%
- Higher rate: 33.75%
- Additional rate: 39.35%
From 6 April 2026 the basic dividend rate increases to 10.75%. Only dividends above your annual dividend allowance are taxed, and dividends do not attract National Insurance, which is why a salary-plus-dividend mix is common for owner-managed companies. A limited company itself pays no National Insurance or self-employment contributions on its profit; those apply only to salaries it pays through PAYE.
Worked example: £80,000 profit
Suppose your Ltd has a taxable profit of £80,000 for 2026. Using the calculator's two-band method:
- First £50,000 × 19% = £9,500
- Next £30,000 × 25% = £7,500
- Corporation Tax = £17,000, leaving £63,000 after tax.
If a basic-rate shareholder then draws £20,000 of that as a dividend, the personal dividend tax at 8.75% is roughly £1,750 (before the dividend allowance is applied). So the same money is taxed once inside the company and again when it leaves as a dividend. Because marginal relief is not modelled, a profit of exactly £80,000 would in reality attract a slightly lower effective Corporation Tax figure than the £17,000 shown here.
What this calculator does and does not include
The estimate covers Corporation Tax on profit plus the headline personal dividend rate. It does not calculate marginal relief, capital allowances, R&D reliefs, associated-company adjustments, PAYE salary taxes, or the dividend allowance in detail. Corporation Tax is normally due nine months and one day after the end of the accounting period, and the company must still file a CT600 return with HMRC. Treat the output as a planning figure rather than a filed calculation.
Frequently asked questions
How much Corporation Tax does a UK limited company pay in 2026?
A UK Ltd pays 19% Corporation Tax on profits up to £50,000 and 25% on profits of £250,000 or more, with marginal relief tapering the effective rate between those two thresholds.What is the small profits rate for a UK company?
The small profits rate is 19%, and it applies to taxable profits up to £50,000. Above £250,000 the full main rate of 25% applies.How are dividends from a limited company taxed?
Dividends are taxed personally at 8.75% (basic rate), 33.75% (higher rate) and 39.35% (additional rate). From 6 April 2026 the basic rate rises to 10.75%. This is on top of the Corporation Tax the company already paid.Does a UK Ltd pay National Insurance on its profits?
No. A limited company pays no National Insurance or self-employment contributions on its profit itself; National Insurance only applies to salaries paid to employees or directors through PAYE. Dividends also carry no National Insurance.
How much tax on £80,000 company profit?
On £80,000 profit, the simplified calculation is £50,000 at 19% (£9,500) plus £30,000 at 25% (£7,500), giving about £17,000 Corporation Tax. Marginal relief would make the real figure slightly lower.When is Corporation Tax due for a limited company?
Corporation Tax is normally payable nine months and one day after the end of your accounting period, and you must file a CT600 return with HMRC, even though the standard rates remain 19% and 25%.Official sources
- HM Revenue & Customs (HMRC) — Corporate & personal income tax