Smart Tax Planner
Model salary vs dividend splits, pension contributions and business expenses to see your 5-year tax savings as a UK limited company.
Your Inputs
Home office, equipment, travel, software - allowable company expenses reduce your corporation tax.
Take-Home Comparison by Year
- PAYE/Employee
- Ltd Company
Cumulative Annual Savings (Ltd over PAYE)
Year-by-Year Breakdown
| Year | PAYE Take-Home | Ltd Take-Home | Annual Saving |
|---|---|---|---|
| Year 1 | £51,957 | £51,467 | -£490 |
| Year 2 | £53,349 | £53,223 | -£127 |
| Year 3 | £54,783 | £55,031 | £248 |
| Year 4 | £56,260 | £56,893 | £633 |
| Year 5 | £57,781 | £58,812 | £1,031 |
Proactive Tax Tips & Allowances
Pension contribution headroom: You're contributing £5,000/year - below the £60,000 Annual Allowance. Employer pension contributions are fully deductible from corporation tax (19-25%).
Dividend Allowance: The first £500 of dividends each year is tax-free. Above the allowance, dividends are taxed at 8.75% (basic), 33.75% (higher), or 39.35% (additional) rate.
Start capturing savings: You could save £1,295 over 5 years as a Ltd company. The sooner you incorporate, the sooner these savings compound.
Projections assume 3% annual income growth. Corporation tax: 19% (≤£50k profit), 25% (≥£250k). Dividend tax at basic rate (8.75%). This is illustrative and not financial advice. Consult a qualified accountant for your personal situation.