Padlord
⚖️ Tax

Limited Company vs Personal Buy-to-Let Calculator

Compare what a buy-to-let leaves you with held personally under Section 24 against holding it in a limited company paying corporation tax. Enter the profit, the mortgage interest and your tax band to see both post-tax outcomes side by side and the difference.

£

Rent less running costs, before mortgage interest.

£
Your income tax band

For the personal column. The company pays corporation tax regardless of your band.

Company profit

Retained profit stays in the company; dividends bring it into your pocket and add dividend tax.

Company keeps more£2,460Difference in what you keep under the option chosen.
Personal (post-tax)£2,400Tax £3,600.
Company (in your pocket)£4,860Corp. tax £1,140.

Company figures ignore mortgage-rate premiums, accountancy costs and profit-extraction beyond simple dividends. Several free calculators exist - what Padlord adds is dated regulatory accuracy and the same numbers tracked live across your real portfolio.

A tax estimate on the profit only, at current rates - it ignores higher company mortgage rates, accountancy fees and the cost of incorporating an existing property. Not tax advice; take professional advice before you decide.

Questions landlords ask

Is it better to buy property personally or through a limited company?+

It depends on your tax band, how much mortgage interest you have and whether you need the income now. Higher and additional-rate landlords with sizeable interest often keep more through a company, because interest is fully deductible against corporation tax. Basic-rate landlords taking the income straight out often do better personally. This tool shows both side by side.

How is a limited company buy-to-let taxed?+

The company pays corporation tax on its rental profit after deducting mortgage interest in full - 19% up to £50,000 of profit, 25% above £250,000, with marginal relief in between. Taking the money out as dividends adds dividend tax on top. Retaining and reinvesting profit avoids that second layer for now.

Why does Section 24 make companies more attractive?+

Section 24 restricts individual landlords to a 20% credit on mortgage interest, so higher-rate landlords are effectively taxed on income they paid to the lender. Companies are not affected by Section 24 and deduct interest in full, which is why highly-geared portfolios often favour the company route despite the extra running costs.

What costs does incorporating add?+

Company buy-to-let mortgages usually carry higher rates and fees, you will pay for annual accounts and a tax return, and moving existing property into a company can trigger stamp duty and capital gains tax. This calculator compares the tax on the profit only - weigh those extra costs and take professional advice before deciding.

Related tools

🏷️ Stamp dutyWork out stamp duty (SDLT) on a UK property at today's rates, with the 5% buy-to-let surcharge, the effective rate and a band-by-band breakdown.🧾 Section 24 taxSee what the Section 24 mortgage-interest restriction costs a landlord: tax before and after the change, the 20% credit and your post-tax profit.🏦 Capital gains taxEstimate the CGT on selling a buy-to-let: your gain after costs and the annual exempt amount, split across the 18% and 24% rates.

Track the whole portfolio, not just one deal

Padlord keeps every property's yield, cashflow, equity, SDLT and compliance dates current, and shows the personal vs limited-company tax picture side by side.

Start free