Tax calculators · Company directors
For most one-person limited companies in 2026/27, a salary of £12,570 with the rest taken as dividends is still the most tax-efficient mix. Put your own profit in to see the best split for you, and how much you keep.
Every director's position is different. Pensions, a spouse as a shareholder, or timing dividends across two tax years can all change the answer. We'll check yours for free.
Book a free 30-minute callThese calculators give estimates based on the figures you enter and the 2026/27 rates shown for England, Wales and Northern Ireland. They are not personal tax advice. Please speak to us before acting on the results.
Salary is a business expense, so it reduces your corporation tax. Above £5,000, though, the company pays 15% employer National Insurance on it. Dividends come out of profit after corporation tax and are taxed at lower rates than salary, but they don't reduce the company's tax bill.
The calculator tries every salary from £0 upwards in £10 steps, works out the corporation tax, National Insurance and income tax for each one, and shows you the mix that leaves you with the most. It also shows the two salaries most directors use, £12,570 and £5,000, plus taking everything as salary, so you can see the difference.
Example: a company making £60,000 profit. A £12,570 salary with £37,499 of dividends leaves the director with £46,091 after all taxes. Taking the whole lot as salary leaves £41,197, nearly £4,900 less.
| Personal allowance | £12,570 |
| Basic rate band | £37,700 |
| Dividend allowance | £500 |
| Dividend tax: basic, higher, additional | 10.75%, 35.75%, 39.35% |
| Employer NI above £5,000 | 15% |
| Employee NI, £12,570 to £50,270 | 8%, then 2% |
| Corporation tax | 19% to 25% |
| Marginal relief | £50,000 to £250,000 |
Want to read more first? Our guide to paying yourself as a director covers salary, dividends and pension contributions in plain English.
For a one-person company with no other employees, usually £12,570. It uses your personal allowance, and although the company pays about £1,136 of employer National Insurance on it, the salary and the NI both reduce corporation tax. At very high profits a £5,000 salary can edge ahead, which is why the calculator checks every option.
Salary above £5,000 carries 15% employer National Insurance, and above £12,570 you pay employee National Insurance and income tax at salary rates. Dividends avoid National Insurance completely. On £60,000 of profit, taking it all as salary leaves you nearly £4,900 worse off.
Not if you're a director and the only employee. The Employment Allowance isn't available to companies where the sole employee is a director. If you employ other staff the answer changes, so speak to us.
Profit you leave in only pays corporation tax for now. You can take it later, ideally in a year when your income is lower, or use it for employer pension contributions. Choose the basic rate option to see how much you can take before paying higher rate dividend tax.
No. Employer pension contributions are often the most tax-efficient way to take money out of a company, as they reduce corporation tax and carry no National Insurance or income tax. We'll factor them in when we look at your figures.
Compare your take-home through your own company and through an umbrella.
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Check now →Higher earnersWhat crossing £100,000 really costs, and how a pension can win it back.
Try it →Related: Paying yourself as a director · Corporation tax · Company accounts
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