Company Director Salary & Dividend Calculator 2026/27
Free UK tax calculator for company directors. Plan your optimal salary and dividend extraction strategy with corporation tax, dividend tax, employer NI, and pension relief — updated for April 2026 HMRC rates. Includes spouse/second director option for tax-efficient income splitting.
Rates checked against GOV.UK: October 2026
Your details and results
Company Profit
Director's Salary
The suggested optimal salary of £12,570 assumes no other employment income. If you have other PAYE income, adjust accordingly. HMRC: Tax on dividends →
Dividends
Pension & Benefits
EV via Company
▼Company Tax
Personal Tax (Your Extraction)
Optimal Extraction Comparison
Pension via Ltd — Tax Saving
Your Tax Calendar
Related analysis: Dividend Tax +2%: Real Impact · The £100k Tax Trap · Mileage Allowance: The New 55p Rate
Assumptions & Limitations
▼- Corporation tax: Rates of 19% (profits under £50k) and 25% (over £250k) with marginal relief apply to all UK limited companies regardless of industry. Associated companies may affect your thresholds. HMRC: Corporation Tax rates →
- Dividend allowance: £500 tax-free for 2026/27. Dividend rates are 10.75% (basic), 35.75% (higher), 39.35% (additional). HMRC: Tax on dividends →
- Employment Allowance: A company whose only director is the only employee paying NI cannot claim the Employment Allowance (up to £10,500 off employer NI). With the spouse option, both directors are on the payroll, so your company may be able to claim it. It is not applied in these figures, so employer NI shown with a spouse may be higher than you pay. HMRC: Employment Allowance →
- Optimal salary: The comparison table assumes all remaining profit is extracted as dividends. Retaining profit in the company or making employer pension contributions may change the optimal strategy.
- Employer pension: Contributions made by the company are a deductible business expense and not subject to employer NI. They count toward the £60,000 annual allowance. HMRC: Pension Annual Allowance →
- Company car (BIK): Diesel cars include a 4% supplement here, which we could not confirm on GOV.UK, so check with an accountant.
- Student loans: This calculator uses salary only (not dividends), as deducted through PAYE. If you also file a Self Assessment return, repayments are based on your income for the whole year, so check with an accountant how your dividends are treated. HMRC: Student loan repayments →
This calculator is for illustrative purposes only and does not constitute financial or tax advice. Calculations are based on announced HMRC rates for the 2026/27 tax year. Always consult a qualified accountant or tax adviser for personalised guidance. Student loan repayment thresholds and rates are subject to annual review by the Student Loans Company.