Tax-Efficient Profit Extraction Calculator

For UK Directors with External PAYE Income (2025/2026)

1. External Employment

£
£

2. Your Limited Company

£

Profit *before* any director salary or expenses.

? A highly tax-efficient extraction. The company pays into your pension, reducing Corporation Tax. You pay no personal tax on this. Capped by your £60k Annual Allowance (minus other contributions) and available company profit.
£

Tier 2 extraction. Capped by profit & £60k Annual Allowance.

3. Your Situation

? This determines your optimal salary (Sec 3.4). If your main job already pays over £6,500 (the Lower Earnings Limit), you've already secured your State Pension credit for the year, making a £5,000 salary from this company optimal.

Determines optimal salary (Sec 3.4).

? Triggers a critical compliance warning (Sec 6.1). If the company owns a single residential property valued over £500k, you MUST file an Annual Tax on Enveloped Dwellings (ATED) return, even if it's to claim 100% relief for a rental business.

Triggers ATED warning (Sec 6.1).