Pro Calculator
Tax-Efficient Profit Extraction Calculator
For UK directors with external PAYE income (2025/26) — salary, tax-free expenses, employer pension and dividends, in the right order.
Tax-Efficient Profit Extraction Calculator
For UK Directors with External PAYE Income (2025/2026)
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Money in a property company is not yet your money. This calculator stacks the ways of taking it out in the order that costs least tax, for the 2025/26 rates, and shows what actually lands in your account.
What this calculator works out
- Salary to the optimal point given your other income and the national insurance thresholds.
- Legitimate expenses and allowances the company can pay before profit is taxed.
- Employer pension contributions, which are deductible for the company and untaxed on the way in.
- Dividends on what remains, across the dividend bands, with the corporation tax already paid taken into account.
- Total tax paid and net cash received, compared with taking the same amount as salary alone.
A worked example
Extracting £50,000 from a property company as salary alone can cost several thousand pounds more in tax and national insurance than the same sum taken as a modest salary, an employer pension contribution and dividends. The order matters as much as the amount.
Common questions
What is the most tax-efficient way to pay yourself from a property company?
Usually a small salary, then deductible expenses and an employer pension contribution, then dividends on the balance. The right salary depends on whether you already have PAYE income elsewhere, which is where most generic advice goes wrong.
Does the standard £12,570 salary still make sense?
Not if you already have a PAYE job using your personal allowance. In that case the salary is taxed from the first pound and the usual advice actively costs you money — the situation this calculator was built for.
Can my property company pay into my pension?
Yes. Employer contributions are normally an allowable business expense, reduce corporation tax and are not subject to national insurance, which makes them one of the most efficient routes out of a company for money you do not need today.
Related tools and services
Worth running the same deal through the Buy-to-Let Calculator and the HMO Calculator before you commit to a strategy — the same building can look very different under each, and the gap between them is usually the real decision. The rest are in the calculator library.
If the numbers work and the property is in Liverpool or the Wirral, we run it for a living: see HMO and BTL management for a property you already own, or investment sourcing if you are still looking for the right one.
Want this run on a real deal with you? Come to the free class, or take the whole set in the UK Property Investor Toolkit.