Director pay calculator 2026/27
The standard advice of taking a £12,570 salary plus dividends is not always the best answer. Pension contributions, a spouse shareholder, or where you sit in the Corporation Tax bands can all change the numbers.
This tool models salary, dividends, employer pension contributions and retained company profit, then compares the cash result with a £12,570 salary using the same pension and household assumptions.
- Models 2026/27 dividend, CT, NI and PA taper rules
- Spouse shareholder modelling on a 50/50 ordinary-share basis
- Flags the 26.5% marginal relief band
Your Inputs
What this changes
Profit before paying yourself a salary, employer NI, or pension. Higher profit raises taxable profit; if it crosses £50,000 the marginal-relief band starts and Corporation Tax climbs from 19% toward 26.5% before settling at 25% above £250,000.
What this changes
Other companies under common control. The £50,000 lower and £250,000 upper Corporation Tax thresholds are divided by (1 + associated count), pulling the marginal-relief band downward and usually pushing more profit into the 26.5% band.
What this changes
Gross employment income from outside this company. The result includes the additional Income Tax and student-loan repayment caused by this company income, but excludes the other employment cash itself. Savings, rental income and other dividends are outside this input.
What this changes
Direct employer contribution into your pension. Reduces taxable profit pound-for-pound (saving 19% to 26.5% in Corporation Tax) and reduces today's take-home cash because less is left to distribute as dividends. The contribution is shown separately as "Pension pot retained", it is not lost, it is held in your pension scheme.
What this changes
Leave at 0 to pay every available pound out as dividends. With a target, enter the director salary below: that salary is held fixed while dividends are adjusted and surplus remains in the company. After tax targets household cash; Before tax targets salary plus dividends. Set the target to zero to compare salaries for maximum current cash.
What this changes
Select this where the ordinary shares are split 50/50. The calculator models dividends on that basis and uses the spouse's own income, personal allowance and basic-rate band to estimate the household result.
What this changes
Plans 1, 2, 4 and 5 repay at 9% above the plan threshold. Postgraduate loans repay at 6%. The calculation uses salary plus dividends drawn, so dividend-heavy strategies can still trigger repayments.
What this changes
Cancels up to £10,500 of employer NI per year. Single-director companies with no other employees are excluded. Enter eligibility only where the allowance is available. The company salary comparison uses the whole funded range, including higher salaries where they give more cash.
Optimal household net take-home
Rates current for tax year 2026/27
These calculators are diagnostic tools intended to give you an initial estimate. They are not a substitute for personalised advice on your specific circumstances. Figures depend on the inputs you provide and on tax rules that change over time. Speak to us before acting on any result.
A CIMA Chartered Management Accountant will review your details and send you a tailored breakdown.
Estimation only. Assumes current 2026/27 rates. Does not account for BIK, Directors Loan Account balances, or pension annual allowance charges. Tapering can apply where threshold income exceeds £200,000 and adjusted income exceeds £260,000. The salary comparison uses whole pounds, annual director National Insurance and the most beneficial allocation of the Personal Allowance. Other payroll, spouse student loans and minimum-wage constraints are excluded. A tax result does not establish that remuneration is commercially deductible. Compare the published Owner-Manager Tax Index assumptions.
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Need this checked against your full position?
We can include director's loan account balances, pension annual allowance tapering, and the S660A position on spouse shareholdings.
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