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Enter annual revenue and business expenses, or monthly contract income and costs, plus your tax region. Enter revenue before expenses, not profit: the calculator subtracts costs to estimate profit before the director salary being compared.
Use annual revenue or monthly contract income, not profit after expenses.
Exclude director salary and employer NI modelled in the comparison from expenses, then select your tax region.
See take-home, tax pots, and common salary/dividend mixes.
Use the Your Numbers panel on the left to start the comparison.
Director FAQs
Salary uses your Personal Allowance and can help build State Pension credits, while dividends are often taxed at different rates. The right mix depends on profits, Employment Allowance eligibility, and your wider income.
Dividends can be more tax-efficient than additional salary because they avoid National Insurance. However, dividends must be paid from profits, and salary can help build State Pension credits. The mix depends on your total income and circumstances.
Employer NI is charged on salary above the Secondary Threshold. Directors use an annual earnings period, so NI is calculated on total annual salary rather than per pay period. Companies eligible for Employment Allowance may offset some or all of this cost.