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💷 Business Sales Calculator
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Work out the sales you need to achieve your take-home pay — 2026/27 UK tax rates
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 STEP 1 — Your Inputs (blue cells are editable)
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Desired Take-Home Pay (net dividends after tax)£50,000✏️ Enter your figures in
the blue cells (column C).
All other cells calculate
automatically.
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Business Overhead Costs (annual)£30,000
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Direct Costs as % of Sales (e.g. materials, COGS)30.0%
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Director Salary£12,570
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 STEP 2 — UK Tax Assumptions 2026/27 (blue cells can be updated)
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CT — Small Profits Rate (profits ≤ lower limit)19.0%19% — applies when profit ≤ £50,000
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CT — Main Rate (profits > upper limit)25.0%25% — applies when profit > £250,000
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CT — Small Profits Lower Limit£50,000Divide by number of associated companies
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CT — Main Rate Upper Limit£250,000Divide by number of associated companies
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CT — Marginal Relief Fraction1.500%HMRC standard fraction 3/200 = 1.5% — unchanged 2026/27
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Dividend Allowance (tax-free)£5002026/27 — unchanged
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Dividend Tax Rate — Basic Rate Band10.8%10.75% (up from 8.75% in 2025/26)
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Dividend Tax Rate — Higher Rate Band35.8%35.75% (up from 33.75% in 2025/26)
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Higher Rate Threshold (salary + dividends)£50,2702026/27 — frozen
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Personal Allowance£12,5702026/27 — frozen
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 STEP 3 — Dividend Tax Back-Calculation (banded)
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Basic Rate Band Available for Dividends£37,700Higher rate threshold minus director salary = room left in basic band
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Gross Dividend Required (before dividend tax)£63,068Back-calculated so after correct banded tax you keep exactly your target take-home
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Tax Band(s) Applied⚠️ Spans basic AND higher rate (10.75% / 35.75%)Which dividend tax bands are triggered
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Dividend Taxable at Basic Rate (10.75%)£37,200Above £500 allowance, capped at the basic rate band ceiling
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 → Basic Rate Dividend Tax£3,99910.75% × basic rate taxable amount
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Dividend Taxable at Higher Rate (35.75%)£25,368Gross dividend exceeding the basic rate band ceiling
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 → Higher Rate Dividend Tax£9,06935.75% × higher rate taxable amount
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Total Dividend Tax Payable£13,068Combined basic + higher rate dividend tax
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Salary (director remuneration)£12,570Pulled from inputs — at personal allowance level, no employee NI
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 STEP 4 — Corporation Tax (with Marginal Relief)
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Corporation Tax Band🟡 Marginal relief band (19%–25%)CT band the required profit falls into — updates automatically
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Pre-Tax Profit Required£80,705Back-calculated using the exact CT band — no flat-rate approximation
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 → Marginal Relief Deduction£2,539HMRC formula: (upper limit − profit) × 3/200 — only in the marginal band
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Corporation Tax Payable£17,63719% / (25% minus marginal relief) / 25% — correct for the band
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 → Effective CT Rate21.85%Actual blended rate — will be between 19% and 25% in the marginal band
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Post-Tax Profit (= Gross Dividend Available)£63,068Confirms the back-calculation: should equal gross dividend in row 24
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 STEP 5 — Required Annual Sales
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Director Salary (cost to business)£12,570Allowable expense — reduces taxable profit
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Overhead Costs£30,000Fixed overheads from inputs
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Pre-Tax Profit Needed£80,705From Step 4
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Total Fixed Costs to Cover£123,275Salary + Overheads + Required Pre-Tax Profit
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Direct Cost % of Sales30.0%From inputs
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Gross Profit Margin70.0%% of each £ of sales available to cover fixed costs & profit
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 🎯 Required Annual Sales to Achieve Your Take-Home Pay: £176,107
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 STEP 6 — Summary Breakdown
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Annual Sales Required£176,107
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Less: Direct Costs-£52,832
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Gross Profit£123,275
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Less: Director Salary-£12,570
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Less: Overhead Costs-£30,000
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EBITDA / Pre-Tax Profit£80,705
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Less: Corporation Tax-£17,637
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Post-Tax Profit (dividend pool)£63,068
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Less: Dividend Tax (basic rate)-£3,999
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Less: Dividend Tax (higher rate)-£9,069
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Net Take-Home Pay (your target!)£50,000
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 STEP 7 — Monthly & Weekly Sales Targets
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Monthly Sales Target£14,676
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Weekly Sales Target£3,387
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Daily Sales Target (5-day week)£677
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⚠️ For illustrative purposes only. Based on 2026/27 UK tax rates. Dividend tax applies the correct 10.75%/35.75% bands. Corporation tax uses the exact marginal relief formula (3/200) between £50k–£250k. Consult your accountant for personalised advice.
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