Ltd Company Tax Guide UK — Corporation Tax, Dividends & More

How Ltd Company Tax Works

When you operate through a limited company, profits are subject to corporation tax (19-25%). After paying corp tax, you can take money out as dividends, which are taxed at lower rates than salary.

The Optimal Structure

Most directors pay themselves a salary of £12,570 (using the full Personal Allowance) and take the rest as dividends. This minimises NI contributions while maximising tax efficiency.

Calculate your optimal split: Dividend vs Salary Calculator