Is this calculator updated for the 2026/27 tax year?

Yes, all calculators are fully updated with the latest HMRC thresholds, personal allowances, and National Insurance rates for 2026/27.

Can I use this for official tax submissions?

These tools are for estimation and illustrative purposes only. For official tax returns, please consult a qualified accountant or reference HMRC directly.

Partnership vs Ltd Calculator UK (2026/27): Tax, LLP & Profit Split

Partnership vs Limited Company Calculator

✓ Verified for 2026/27

Business Profit & Structure

Total Business Profit

Number of Partners/Directors

Ltd Salary (per director)

Recommended Structure

Limited Company

£3,120 more total take-home

Partnership Take-Home (Total)

£88,000

£44,000 each

Ltd Company Take-Home (Total)

£91,120

£45,560 each

Total Tax Savings

£3,120

combined savings

Structure Comparison (Combined)

Partnership Net Take-Home £88,000

Partnership Total Taxes £32,000

Ltd Company Net Take-Home £91,120

Ltd Company Total Taxes £28,880

Partnership 49%

Ltd Company 51%

ℹ️ A General Partnership splits business profits directly among the partners, who pay individual Income Tax and Class 4 National Insurance. A Limited Company structure pays Corporation Tax on profits first, but allows profits to be divided tax-efficiently as director salaries and dividends.

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Verified for Accuracy (2026/27 Tax Year)

Fact-checked and audited by David Vance, CTA FCA, Chartered Tax Advisor & Accountant. Verified against official HMRC rules.

How We Calculated This

Input variables: Enter the relevant amounts, rates, or percentages in the form.
Real-time breakdown: The calculator applies HMRC rules and thresholds for the 2026/27 tax year to process the values.
Display outputs: The visual graphs, donut charts, and tables are compiled dynamically to show your net take-home and deductions.

Real-World Examples

Standard Scenario

A basic calculation applying standard UK tax bands and allowances.

Calculation runs based on standard HMRC rules.

With Pension or Deductions

Factoring in a percentage of salary sacrifice or pension contributions.

Deductions are calculated and adjusted accordingly.

Related Calculators

Frequently Asked Questions

What is the difference between a business partnership and a Limited Company?

In a standard business partnership, two or more partners share personal responsibility for business debts, and profits are split and taxed directly on each partner’s personal tax return. A Limited Company is a separate corporate entity with limited liability, meaning owners (shareholders) are only liable up to the value of their shares, and profits are taxed corporately before distribution.

How are partnership profits taxed?

Partnerships are “transparent” for tax purposes. The partnership itself does not pay income tax. Instead, profits are allocated to the partners according to their partnership agreement, and each partner pays Income Tax and Class 4 National Insurance on their share of the profit, regardless of whether they leave the money in the business bank account or draw it out.

What is a Limited Liability Partnership (LLP) and how is it taxed?

A Limited Liability Partnership (LLP) combines the legal benefits of limited liability (protecting partners’ personal assets) with the tax flexibility of a traditional partnership. LLPs are registered at Companies House, but partners are still taxed as self-employed individuals on their share of profits rather than paying Corporation Tax.