Last Updated on 06/03/2026
Use our salary and dividend calculator to estimate your tax and national insurance if you are self-employed and working through a limited company
Self-employed company director
If you are a self-employed individual working through a limited company, you have greater flexibility in structuring your pay tax efficiently. As a limited company director you can draw a salary and dividends from your business. You’ll pay PAYE and employee national insurance on your salary via payroll and tax on dividends via your annual self assessment tax return . Use our salary and dividend tax calculator for company directors for a quick estimate of your tax liability for the year.
Tax and national insurance for company directors
Company directors pay employee national insurance contributions of 8% on their annual salary over £12,570 and 2% on their salary above £50,270. Income tax or PAYE is due on salary exceeding the personal allowance (usually £12,570 a year) at the tax percentage of the tax band the salary falls within. For basic rate taxpayers with an annual salary up to £50,270 the tax rate is 20%.
The company pays employer national insurance contributions of 15% on annual directors’ salaries over £5,000 and this is deductible against corporation tax.
Tax on dividends
Dividends are taxed at different tax rates, depending on the tax band they fall within. All dividends falling within the basic tax band are taxed at 8.75% (10.75% from April 2026) while dividends in the higher and additional tax bands are taxed at 33.75% (35.75% from April 2026) and 39.35%. The first £500 of dividends are tax-free as these fall within the annual dividend allowance.
Salary and dividend tax calculator
Our salary and dividend tax calculator for company directors, estimates the tax on salary and dividends, plus the employee and employer national insurance contributions. The calculator also provides an estimate of net pay for the year.
The 2025/26 tax year calculator provides estimates for annual salaries up to £50,270 and a combined salary and dividends of £100,000. The calculator assumes a tax code of 1257L and personal allowance of £12,570.
Tax year 2025/2026:
Limited Company Director Tax Calculator
Calculate tax and National Insurance on director salary and dividends (salary up to £50,270, combined income up to £100,000)
PAYE Tax:
£0.00Employee’s NIC paid by director:
£0.00Employer’s NIC paid by company:
£0.00Dividend Tax:
£0.00Total Tax & National Insurance:
£0.00Net Salary (after tax & NI):
£0.00Net Dividends (after tax):
£0.00Total Take Home:
£0.00To assess the impact of the increases in dividend tax from April 2026, please use our updated tax calculator, which you can access using the link below:
Disclaimer:
This calculator provides estimates for general informational purposes only and is not a substitute for professional tax advice. The calculations are based on generalised assumptions and may not reflect your specific tax situation.
Tax laws and regulations change frequently. We do not guarantee the accuracy, completeness, or timeliness of the information provided. Results generated should be verified with a qualified tax professional before making financial decisions.
Take a look at our tax calculator for limited company directors, which provides a more extensive breakdown and estimate of both company and personal tax.
