Your Numbers

Director Intelligence

Director Pay Dashboard

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Enter your numbers to compare director pay options

Add your company profit, costs, and region to see take-home pay, tax to set aside, and common salary versus dividend mixes.

1. Company profit

Annual profit or monthly income, depending on the mode you choose.

2. Expenses and region

Add costs and select your tax region so the comparison is grounded.

3. Compare outcomes

See take-home, tax pots, and common salary/dividend mixes.

Use the Your Numbers panel on the left to start the comparison.

On mobile, tap the calculator button to enter your figures.

Learn

Why £12,570 matters

The Personal Allowance is £12,570. Earnings up to this are not subject to income tax; NI credits depend on earnings level.

Corporation Tax

19% on profits up to the small-profits limit, 25% at the main rate limit, with marginal relief in between. Associated companies can reduce these limits.

Employer Pension

Tax-efficient: company deducts from CT, you pay no tax or NI. Annual allowance £60k (includes all contributions). Can carry forward unused allowance from previous 3 years.

Assumptions

Results below use the current inputs and assumptions shown here.

Tax Year2026/2027

RegionEngland/Wales/NI

Trading PeriodFull Year

Other IncomeNone

Employment AllowanceNot claimed

Student LoansNone

Associated Companies1

Accuracy & Scope

What this calculator does

• Compares salary vs dividend extraction strategies
• Uses current HMRC rates (single source of truth)
• Assumes single director and standalone company, with a full-year view

Known limitations

• Student loan £2k unearned income rule (may overstate)
• Short accounting period adjustments
• Marriage Allowance transfers
• IR35 status considerations
• Pension carry-forward from previous years
• MPAA (Money Purchase Annual Allowance) - £10k limit if pension accessed
• Dividend timing (declaration vs payment date)

MTD for Income Tax timeline (current HMRC plan)

• From 6 April 2026: qualifying income over £50,000
• From 6 April 2027: qualifying income over £30,000
• From 6 April 2028: qualifying income over £20,000

Scope depends on your personal income sources. Limited-company directors may still file Self Assessment outside MTD for Income Tax unless qualifying self-employment or property income applies.

Disclaimer: For illustrative purposes only. Not financial or tax advice. Consult a qualified accountant for advice specific to your situation. Based on HMRC rates for 2026-2027 which may change.

Director FAQs

Common director pay questions

How do salary and dividends compare for company directors in 2026-27?

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.

Are dividends better than salary for directors?

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.

How is Employer NI calculated on director salary?

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.