Limited company (director salary + dividends)
Corporation tax uses a simplified marginal relief curve; dividend tax applies after the £500 dividend allowance.
Inputs (2025/26, England & Wales / NI)
Figures cover England, Wales & Northern Ireland; Scottish income tax bands are handled separately. Class 2 NI is treated as £0 for self-employed profits under the small-profits framework.
Estimated net (annual)
£56,379
Effective tax + NIC load 17.0%
Breakdown
- Income tax£0
- Employee NIC£0
- Employer NIC£0
- Class 4 NIC£0
- Corporation tax£11,040
- Dividend tax£2,581
- Total£13,621
Quick comparison
| Structure | Net annual | Effective rate |
|---|---|---|
| Limited company (Ltd) | £56,379 | 17.0% |
| PAYE employee | £55,174 | 42.7% |
| Self-employed (sole trader) | £51,911 | 25.8% |