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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