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Profit Extraction Check
Five figures on how you take money from your company. See the tax on it, where you stand, and what matters most now
Are you taking profit efficiently?
Five figures for this tax year, rough is fine. See the tax on what you take and what matters most now.
5 quick questions
Your result
Enter your salary and dividends to see the tax on what you take and your stage.
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What matters most now
Information, not personal advice. A simplified estimate of income tax and National Insurance for 2026/27, England only. Corporation tax is not included.
The five stages, from paying yourself to selling.
Your result points to one of these. Each opens that stage of our guide.
What this check looks at, and why
As an owner-director you choose how you are paid, and each route is taxed differently. Dividend tax rose in April 2026, and employer National Insurance is now 15%. The split you settled on years ago may no longer keep the most.
This check adds up the income tax and National Insurance on what you take, and shows whether any of it falls between £100,000 and £125,140. It also shows how much pension allowance is left this year. It then points to the matching part of our guide for owner-directors.
It does not work out corporation tax or suggest a split. To compare salary and dividends on your own profit, use the salary against dividend calculator. Your accountant should confirm the tax for your company.
Frazer James is an independent, FCA-regulated firm of Certified Financial Planners based in Bristol. The first meeting is free.
Written for directors of UK limited companies. Figures checked against gov.uk on 22 September 2026. Sole traders and partnerships are taxed differently. Information, not personal advice.
Key figures, 2026/27
The numbers that govern how you are paid.
Sources: gov.uk rates and allowances for 2026/27 and HMRC guidance on employer pension contributions, checked 22 September 2026. Corporation tax is 19% on profit up to £50,000, 25% above £250,000, and an effective 26.5% on profit in between. Scotland sets its own income tax bands.
Before you start
Three things worth knowing.
Your income band matters most
Between £100,000 and £125,140 the personal allowance is withdrawn. That one band changes what the best mix looks like.
Your company can pay into your pension
An employer contribution is usually deductible for corporation tax and carries no National Insurance. The check shows how much of this year’s allowance is left.
Personal tax, not company tax
The figures cover your income tax and both National Insurances. Corporation tax on profit is left out, because it depends on your accounts.
Go further
A calculator for each stage.
Each one opens on this page and shows the workings behind the figures.
Stage 1 · Paying yourselfSalary against dividendThe most efficient split for your profit, with corporation tax and both National Insurances included.Open the calculator
Stage 2 · The £100,000 bandYour whole tax positionSalary, dividends, savings and rent together, and exactly what a pension contribution changes.Open the calculator
Stage 3 · Money left in the companyPension tax relief calculatorWhat a contribution really costs once every layer of relief is counted.Open the calculator
Stage 5 · Selling, one dayBusiness Asset Disposal ReliefThe tax on selling your company at 18%, whether you qualify, and what a second shareholder saves.Open the calculatorSince working together, I feel more organised, more secure and more positive about the future. The advice has been exceptionally valuable, financially, professionally and personally.
Questions owner-directors ask
What is the most tax-efficient way to pay myself?
It depends on your profit, your other income and whether you need the money now. Most owners use a mix of salary, dividends and a company pension contribution. The April 2026 changes moved the arithmetic, so the split is worth checking each year.
How much are dividends taxed in 2026/27?
After a £500 allowance, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% above £125,140. The first two rates rose by two points in April 2026.
Can my company pay into my pension?
Yes. An employer contribution is normally deductible for corporation tax and carries no National Insurance. It counts towards your £60,000 annual allowance, and unused allowance from the previous three years can be carried forward.
Why does this check leave out corporation tax?
Corporation tax depends on your company’s profit and accounts, not on how you are paid alone. The salary against dividend calculator includes it when you compare the two routes.
Is this check financial advice?
No. It gives information based on your figures and the rules in England for 2026/27. It is not a personal recommendation. Your accountant should confirm the tax treatment for your company.
Before you go further
Who our advice is not for.
We would rather say so now than waste your time.
- You want the tax answer and nothing else.That is your accountant's work, and they should do it.
- You want a product recommendation without a plan behind it.
- You trade as a sole trader or a partnership.Most of this page is about limited companies.
Important information. This page gives information, not personal advice. Tax rules can change, and how they apply depends on your circumstances and your company's. Corporation tax and payroll are matters for your accountant.
The value of investments can fall as well as rise, and you may get back less than you invest. A pension is a long-term investment and cannot normally be accessed before age 55, rising to 57 in 2028.
If you want a recommendation for your own position, that is what our financial planning for business owners is for.
Reviewed by
BSc, MLIBF, PETR, Chartered ALIBF · Co-Founder and Chartered Associate
Chris has spent over a decade in financial planning and specialises in research and technical analysis. He checks every figure and calculation on this page before it is published.
RUNNING A COMPANY AND PAYING MORE TAX THAN YOU NEED TO?
Bring your figures to a free first conversation. We will talk through how you are paid and what the company keeps.