Company Profit & Extraction Modeller 2026/27
Compare an illustrative limited-company salary, dividend and employer-pension scenario against company profit and Corporation Tax.
Enter annual accounting profit after normal business costs but before director salary, employer National Insurance and employer pension — not turnover. This tool estimates whether selected dividends fit within a simplified post-tax profit calculation. It assumes a standard England, Wales or Northern Ireland personal tax position, annual director National Insurance calculation, no other income, losses, benefits, student loan, IR35 deemed payment or group-company adjustments beyond the associated-company input.
£17,176 remains after the requested dividends in this simplified model.
Corporation Tax band: Marginal relief band. Profit is between £50,000 and £250,000.
Two fictional illustrations
Case A — one-director consultancy
A fictional consultancy has £80,000 profit before director pay, no associated companies and no other payroll. The director should compare a low salary, a salary at the Lower Earnings Limit and a salary at the Personal Allowance rather than assuming any one figure is best. The company must check whether Employment Allowance is available before treating employer NI as offset.
Case B — growing agency with pension priority
A fictional agency has £180,000 profit before director pay, two directors and an employee payroll. Corporation Tax thresholds may be affected by associated companies, and employer pension contributions can change both cash extraction and the company profit calculation. The directors should model affordability, annual allowances and each shareholder’s personal tax position before declaring dividends.
The model cannot determine whether Employment Allowance applies, whether dividends are lawful, your National Insurance qualifying-year position, pension annual allowance, Scottish tax, IR35 treatment, company group status or every relief. Ask an accountant to review a proposed payroll or dividend decision before acting on it.
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Information on this page is general guidance for UK small businesses and is not financial, tax or legal advice. Tax rules, allowances and product terms change. Always check current information with HMRC, Companies House or a qualified professional before making decisions.