Salary & dividend calculator
For company directors: see your take-home pay from a salary plus dividends, after income tax, NI and dividend tax. 2025/26, England.
Your estimate
Estimated take-home
£0
- Gross income
- £0
- Income tax (salary)
- £0
- Employee NIC
- £0
- Dividend tax
- £0
- Total tax & NIC
- £0
Personal tax only. Assumes England rates, the standard personal allowance and no other income or reliefs. It does not include Corporation Tax or the personal-allowance taper above £100,000.
In plain English
The terms, explained
New to this? Here’s what the words on this page actually mean.
- Salary
- A regular wage paid through PAYE. Directors often take a small salary plus dividends.
- Dividends
- Money taken out of your company as a shareholder, from profits after Corporation Tax.
- Take-home pay
- What’s left after income tax, National Insurance and dividend tax — the money in your pocket.
- Effective tax rate
- Your total tax as a percentage of your gross income — usually lower than your top band rate.
FAQ
Salary & dividend calculator — your questions answered
What is the most tax-efficient salary for a director?
Most directors take a salary at or near the £12,570 personal allowance and the rest as dividends, because dividends carry no National Insurance and are taxed at lower rates. The optimal figure depends on your profit and other income — we work it out for each client.
How are salary and dividends taxed differently?
Salary is subject to income tax and National Insurance and is a company expense. Dividends carry no National Insurance and are taxed at lower dividend rates, but they’re paid from profit after Corporation Tax. The best mix balances both.
How much can I take from my company tax-free?
At the personal level, a salary up to the £12,570 personal allowance plus the £500 dividend allowance is broadly tax-free — though Corporation Tax still applies to company profits before dividends are paid.
How do I pay myself from a limited company?
Usually a small PAYE salary plus dividends declared from your company’s profits. We set up and run the payroll, prepare the dividend paperwork, and keep it all compliant.
When do I pay the tax on my dividends?
Through Self Assessment by 31 January after the tax year. If your bill is over £1,000 you may also make payments on account towards the next year — we’ll explain your full schedule.
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