Partnership vs Limited Company Calculator
✓ Verified for 2026/27Business Profit & Structure
£
£
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%
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.
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.
Frequently Asked Questions
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.
Related Calculators
About This Calculator
This calculator uses the latest HMRC rates for the 2026/27 tax year. For illustrative purposes only — always consult a qualified tax adviser for formal advice.