Director salary and dividends
Estimate personal take-home from a limited company salary and dividends without treating it as a full company tax calculation.
Use this calculator if you are a company director, contractor or business owner taking a payroll salary plus dividends and want a personal tax estimate.
Enter an annual director salary and dividends. The calculator estimates payroll deductions on salary, dividend tax on dividends and combined personal take-home.
Director income
Combine a director salary estimate with dividend tax to see personal take-home from salary and dividends.
Combined annual take-home
£47,748.75
Monthly average: £3,979.06
Salary take-home
£12,570.00
Net dividends
£35,178.75
Dividend tax
£4,821.25
Effective personal deduction rate
9.17%
This does not currently calculate corporation tax, employer National Insurance, accountancy costs, expenses, VAT or money left inside the company.
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A common planning scenario is to enter £12,570 as salary and £40,000 as dividends. The calculator estimates payroll deductions on the salary, dividend tax on dividends and the combined annual and monthly personal take-home.
The salary part uses the same PAYE-style logic as the take-home pay calculator for income tax, employee National Insurance, pension deductions and student loan repayments. The dividend part then estimates dividend tax by placing dividends on top of taxable salary and other personal income.
It includes director salary, dividends, optional other personal income, selected pension treatment, selected student loan plan, salary deductions, dividend allowance and 2026/27 dividend tax rates.
This does not currently calculate corporation tax, employer National Insurance, accountancy costs, expenses, VAT or money left inside the company. It is not an optimal salary recommendation.
The estimate may be wrong if company profits cannot support the dividends, corporation tax has not been considered separately, dividends are unlawful, payroll settings differ, or other personal income is not entered.
No. It estimates personal take-home from salary and dividends only. It does not calculate corporation tax, employer National Insurance, accountancy costs, expenses, VAT or money left inside the company.
Not always. The right mix depends on company profits, corporation tax, payroll costs, pension planning, cash needs and personal circumstances. This calculator does not recommend an optimal salary.
Yes. Salary can be subject to income tax, employee National Insurance, pension deductions and student loan repayments. Dividends use separate dividend tax rates.
Dividends are generally not earned income for pension contribution limits. Director pension planning should be checked carefully before acting.
You may need to report dividends depending on the amount and how your income is taxed. Directors commonly need to keep records and may need Self Assessment.
No. It does not recommend an optimal salary. Salary and dividend choices depend on company profit, payroll costs, pensions, corporation tax, cash flow and personal circumstances.
Yes, for a personal salary and dividend take-home estimate. It is not a full contractor company accounts, IR35, VAT or corporation tax planning tool.