Director Salary Calculator
Estimate your take-home pay from a company director’s salary and dividends. See Income Tax, Employee & Employer National Insurance, and dividend tax, based on 2024/25 UK rates.
Estimate Your Salary & Dividend Split
Enter your annual salary and dividend amounts to see an estimated tax breakdown and take-home pay, using standard 2024/25 UK Income Tax, National Insurance and dividend tax rates.
Your Income
Enter your annual salary and dividend amounts
Tax & Take-Home Estimate
Based on 2024/25 UK tax rates
Key 2024/25 Tax Thresholds
The core figures this calculator uses. These are standard UK-wide thresholds and don’t reflect Scottish Income Tax bands.
| Threshold | Amount / Rate |
|---|---|
| Personal Allowance | £12,570 |
| NI Primary Threshold (Employee) | £12,570 |
| NI Secondary Threshold (Employer) | £9,100 |
| Employee NI Rate (up to £50,270) | 8% |
| Employee NI Rate (above £50,270) | 2% |
| Employer NI Rate | 13.8% |
| Dividend Allowance | £500 |
| Dividend Tax — Basic Rate | 8.75% |
| Dividend Tax — Higher Rate | 33.75% |
| Dividend Tax — Additional Rate | 39.35% |
| Higher Rate Threshold | £50,270 |
| Additional Rate Threshold | £125,140 |
Director Salary FAQ
Answers to common questions about paying yourself as a UK company director.
Many limited company directors pay themselves a modest salary and take the rest of their income as dividends, because salary is a deductible business expense for Corporation Tax while dividends are typically taxed at lower rates than salary above the personal allowance.
No. Dividends are not subject to National Insurance, either employee or employer. Only salary above the relevant thresholds attracts National Insurance contributions.
For the 2024/25 tax year, the first £500 of dividend income is tax-free, regardless of your other income. Dividends above this allowance are taxed at 8.75%, 33.75% or 39.35% depending on which tax band they fall into.
This calculator provides a simplified estimate using standard 2024/25 rates and thresholds. It does not account for other income, pension contributions, student loans, Scottish tax rates or other individual circumstances, so always confirm figures with an accountant or HMRC.