afterax

Director mix

Director mix

Net to director

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£55,765

£24,235 total tax across CT, NIC, IT and dividend tax · effective 30.3%

2026/27 rates · Last checked · Sources visible below

Limited company assumption

This assumes a simple UK limited company, one director-shareholder, a 12-month accounting period and no Employment Allowance. Associated companies, other employees, benefits, loans or retained-profit planning can change the optimum.

Where company profit goes

Total tax £24,235

£80,000 pre-extraction

Net to director

£55,765

Corporation tax

£13,818

Employer NIC

£1,136

Personal IT + NIC

£0

Dividend tax

£9,282

Optimum split

On £80,000 profit, the salary that maximises your net is £12,570 + dividends.

Net at optimum: £55,765

Try a salary level

£0 – £50,270

Drag the slider, see how the mix changes net-to-director.

Salary

£12,570

+ £52,476 dividend

Net to director

£55,765

At the optimum

£0£25k£50k

Where your tax goes

on £24,235 total tax

Illustrative allocation only - UK taxes are not ring-fenced. Approximate share of UK central government spending, applied to your total tax.

21%

£5,162

Welfare

74 weeks of welfare per citizen

21%

£5,065

Health

517 days of NHS care (per citizen)

12%

£2,884

State Pensions

12 weeks of state pension

11%

£2,617

National Debt Interest

10%

£2,496

Education

66 school days funded

6%

£1,333

Defence

Categories and shares from HMRC's 2024/25 Annual Tax Summary methodology (PESA 2025 + OBR March 2025). Last reviewed 2026-04-29.

See the full UK budget →

+ £4,701 across public order & safety, transport, business & industry and 6 more

Use this if

  • You run a UK limited company and want a salary/dividend extraction estimate.
  • You want corporation tax, employer NIC and personal tax in one view.
  • You want to test common one-director salary levels.

Not for

  • Companies claiming Employment Allowance or with multiple employees.
  • Director loans, benefits in kind, pension contributions or retained-profit strategy.
  • Associated companies or short accounting periods.

Estimates for illustrative and educational purposes only. Calculations use HMRC published rates and are not regulated financial, tax, or legal advice. Verify against your own tax position before filing or making financial decisions.

Related calculators

Other UK tax tools that pair with this one.

Salary vs dividend for UK ltd directors

Most one-person ltd company directors optimise extraction by paying themselves a small salary plus dividends. Salary is corporation-tax deductible, but attracts personal income tax and NIC. Dividends pay no NIC and have their own tax bands, but are paid from post-corporation-tax profit. The optimum balance depends on your company's CT band and personal income, this calculator finds it for your numbers.

  • What's the optimum salary for a director shareholder?

    It depends on company profit, corporation-tax band and personal income, but commonly around £12,570 (the personal allowance), high enough to get a qualifying year for State Pension, low enough to avoid most personal NIC. The Afterax director-mix calculator sweeps salary £0 → £50k and finds the precise optimum for your numbers.

  • Why would a director take any salary at all?

    Salary is corporation-tax deductible at 19–25% and counts towards State Pension. Dividends aren't deductible. So even if salary attracts personal income tax + NIC, the corporation tax saved often more than offsets it. The trade-off depends on your company's CT band.

  • Should the company pay an employer pension contribution?

    Often yes. Employer pension contributions are corporation-tax deductible AND avoid personal income tax + NIC AND avoid employer NIC. In tax efficiency they typically beat both salary and dividends, subject to the £60,000 annual allowance.

  • Can I take a salary above the National Minimum Wage as a director?

    If you're an office holder only (not an employee), NMW doesn't apply. If you have an employment contract, it does. Most one-person ltd company directors are office holders, so a £12,570 salary on a notional 'low hours' arrangement is common practice.

Sources & last reviewed

Updated for 2026/27 · last reviewed 1 March 2026 · view changelog →

Bands, thresholds and reliefs on this page come directly from the following official sources. Tax rates are checked against these references whenever a Budget or in-year change is announced.