Limited company pension contribution calculator

Free tool

Tax year

6 April to 5 April. The company's year is taken as 1 April to 31 March alongside it.

Amount the company would pay into your pension

The same company money is also worked out as extra salary and as an extra dividend. For example, 10,000.

Company profit before the contribution

Taxable profit for the company's year after your existing salary. For example, 60,000.

Your salary from the company (optional)

For the tax year. Leave blank for £12,570, the personal allowance.

Dividends you already take (optional)

For the tax year, before this decision.

Your other income (optional)

Taxable income from outside the company, such as another job or rent.

Other pension contributions this year (optional)

Your own contributions and any other employer's, counted with this one against the annual allowance.

Have you already flexibly accessed a pension? (optional)

For example taken cash from drawdown. If so, the £10,000 money purchase annual allowance applies.

Yes No

Are you the company's only employee paid over £5,000 a year?

Answer yes for a one-person company: it can't claim the Employment Allowance.

Yes No

Do you pay Scottish Income Tax? (optional)

Yes if your main home is in Scotland.

Yes No

Associated companies (optional)

Other companies under the same control. Leave blank if none.

For a director who owns the company. General information, not tax or pensions advice.

Example

Worked example

Tax year: 2026-27; Pension contribution: £10,000; Company profit: £60,000; Your salary: £12,570; Your dividends: £25,000; Director is the only employee: yes. Enter your own details to replace this example.

For 2026/27, a £10,000 employer pension contribution puts all £10,000 into your pension, with no National Insurance, and cuts the company's Corporation Tax by £2,650.00. Taken as extra salary instead you would keep £6,260.87, or £6,559.87 as an extra dividend, after tax.

Into your pension: £10,000.00
Corporation Tax saved by the contribution: £2,650.00
National Insurance on the contribution: £0.00
As extra salary: you keep: £6,260.87
As extra salary: gross salary: £8,695.65
As extra salary: National Insurance (employer and employee): £2,000.00
As extra salary: Income Tax: £1,739.13
As an extra dividend: you keep: £6,559.87
As an extra dividend: Corporation Tax first: £2,650.00
As an extra dividend: dividend tax: £790.13
Pension savings this year: £10,000.00
Annual allowance for 2026/27: £60,000.00

The same money three ways

£10,000.00 of company money as a pension contribution, extra salary or an extra dividend, 2026/27
	Pension	Salary	Dividend
Company money used	£10,000.00	£10,000.00	£10,000.00
Corporation Tax	£0.00	£0.00	£2,650.00
Employer National Insurance	£0.00	£1,304.35	£0.00
Employee National Insurance	£0.00	£695.65	£0.00
Income Tax or dividend tax now	£0.00	£1,739.13	£790.13
Ends up with you	£10,000.00	£6,260.87	£6,559.87

The pension column is money in the pension, taxed when you take it out; the other two are cash in your pocket now.

The company can deduct the contribution if it is paid wholly and exclusively for the business. HMRC accepts this where your whole pay package, pension included, is in line with what an unconnected person doing your job would get.
The deduction is for the accounting period in which the company actually pays the money into the pension, not when it is accrued in the accounts.
On the figures entered, your pension savings this year, £10,000.00, are within your annual allowance of £60,000.00. Employer and personal contributions count together. The allowance is lower for very high incomes or once you have flexibly accessed a pension.
Pension money is taxed when you take it out: usually up to 25% can be taken tax-free and the rest is taxed as income. Most schemes let you take it from age 55.
With you as the company's only employee paid over £5,000, it can't claim the Employment Allowance, so extra salary carries 15% employer National Insurance.
The extra salary is the most the same company money buys after employer National Insurance. Tax figures are the extra tax on top of your existing salary, dividends and other income.

Sources: HMRC Business Income Manual BIM46035: pension contributions for controlling directors, wholly and exclusively HMRC Business Income Manual BIM46010: pension contributions, timing of deductions HMRC: Salary sacrifice for employers (an employer contribution to a registered pension scheme carries no Income Tax or National Insurance) GOV.UK: Tax on your private pension contributions, annual allowance HMRC: Pension schemes rates and allowances GOV.UK: Tax when you get a pension, what's tax-free GOV.UK: Early retirement, personal and workplace pensions HMRC: Rates and thresholds for employers 2026 to 2027 GOV.UK: Tax on dividends GOV.UK: Corporation Tax rates and reliefs