Private doctor on £300,000

Personal Ltd Co. Age 58. Pension preference: aggressive.

Every figure on this page is computed at build time by the same engines that power the live salary–dividend split, take-home and SIPP optimiser calculators. Inputs come from a single CSV row; outputs come from the engines. No static lookup tables, no hand-coded numbers.

Net cash

£129,121

Pension

£60,000

Effective rate

37%

Marginal rate

39.4%

What a private doctor on £300,000 of company profit actually takes home

A private doctor running a personal Ltd Co with £300,000 of profit before director pay (2026/27 rUK rates) can extract that profit as some mix of salary, dividend and employer pension. The joint optimum — the combination that produces the highest net wealth — pays £5,000 as salary, £176,475 as dividend and £60,000 as an employer pension contribution. Total tax + NI through the chain comes to £110,879 — an effective rate of 37% on company profit.

The "rule of thumb" baseline — £12,570 salary, no pension, max dividend — leaves £33,064 on the table at this profit level. That gap is the value of solving the four-band salary problem (LEL / PT / ST / £12,570) jointly with the pension decision rather than picking each one independently.

The five tax lines that produce the optimum

Corporation tax: £58,525 on £235,000 of post-pay profit.
Employer NI: £0 on the £5,000 salary (15% above the £5,000 Secondary Threshold).
Employee NI: £0 on the same salary (8% main band, 2% above £50,270).
Income tax: £1,000 on the salary (rUK bands, after personal allowance tapered above the £100,000 threshold).
Dividend tax: £51,354 on the £176,475 dividend (8.75% / 33.75% / 39.35% bands, stacked above salary).

Net cash to the director: £129,121. Pension contribution (locked until age 55, rising to 57 from 6 April 2028 per the Finance Act 2021): £60,000. Net wealth on the all-£1-is-equal view: £189,121.

The numbers, line by line

Optimum salary	£5,000
Optimum dividend	£176,475
Optimum pension	£60,000
Net cash (optimum)	£129,121
Net wealth (cash + pension)	£189,121
Rule-of-thumb net cash	£156,057
Rule-of-thumb net wealth	£156,057
Saving vs rule of thumb	£33,064
Effective rate on profit	37%
Marginal rate (next £1 dividend)	39.4%
Years to age-57 pension access	0
Annual pension contribution (this row)	£60,000
Projected pot at 57 (5% real, single-path)	£0
Sustainable income @ 4% SWR	£0/yr

Why this scenario is different

Compared to the closest peer profile — Management consultant at £280,000 — this scenario sits £20,000 higher on gross income. That moves net cash by +£8,916, the pension contribution by +£0, and the effective rate by +1.3%. The effective rate moves only modestly — both scenarios sit inside the same binding tax band. The optimiser shifts £14,700 of the extraction into the dividend slice, and £0 out of pension contributions.

Questions this scenario raises

What is the Personal Allowance and how is it used in this calculation?

The Personal Allowance is the first £12,570 of non-savings, non-dividend income on which no income tax is charged. It is consumed from the bottom up: salary first, then dividends. Above £100,000 of adjusted net income the allowance tapers at £1 lost for every £2 of income, fully eroded at £125,140 — producing the well-known 60% effective marginal rate inside that £25,140-wide band.

How much can I put into pension this year?

The 2026/27 pension Annual Allowance is £60,000. Above £260,000 of adjusted income the Annual Allowance tapers from £60,000 down to £10,000 floor — for this row the effective AA is around £40,000. Carry-forward of unused AA from the last three tax years is available subject to membership-in-each-year rules.

Does this include the High Income Child Benefit Charge?

No. HICBC is not in the engine. If you or your partner earn over £60,000 and either of you claims Child Benefit, HICBC tapers the Child Benefit at 1% for every £200 of income over £60,000, fully eroded at £80,000 (2026/27 thresholds). This adds an effective 11% marginal between £60,000 and £80,000 for a one-child household, ~22% for two children, etc.

What is the £500 Dividend Allowance and how is it used?

The first £500 of dividends in 2026/27 is taxed at 0%. It does not reduce taxable income — it sits as a 0% slice within the band schedule. So a basic-rate dividend recipient with £500 of dividends pays £0; with £600 of dividends pays 8.75% × £100 = £8.75. The £500 is consumed in band order (cheapest band first).

What does the "marginal rate" mean on this page?

It is the rate paid on the next £1 of gross income added to this scenario. For this row that figure is 39.4%. The marginal rate is always higher than the average effective rate — it is the right number for "is one more invoice worth it" decisions.

Methodology

Income tax, National Insurance and Corporation Tax bands taken from HMRC's 2026/27 rates and allowances tables (gov.uk/.../income-tax; corporation-tax). Pension Annual Allowance and taper rules from Finance Act 2004 / 2023. Trading allowance per ITTOIA 2005 s.783A. Voluntary Class 2 figure (£179.40/yr = £3.45/wk × 52) from HMRC voluntary NI guidance.

Style: 2026/27 tax year throughout; figures rounded to whole pounds in the user-facing prose; effective rates computed as (deductions / gross). The voice is methodological — no first person, no claimed credentials, no marketing fluff.

This page is not personalised advice; for advice regulated by the FCA, consult an adviser registered with the Financial Conduct Authority. See the full disclaimer.