Liberate Accountants - Professional accounting services

    Director Tax Calculator

    Calculate your tax liability on salary, dividends, and savings income for the 2025/26 tax year. Specifically designed for company directors and shareholders.

    Comprehensive Calculation

    Calculate tax on salary, dividends, and savings income in one place

    Tax Efficiency

    Understand the most tax-efficient mix of salary and dividends

    Detailed Breakdown

    See exactly how each income type is taxed and your allowances

    Optimize Strategy

    Plan your director's remuneration for maximum efficiency

    Director Tax Calculator 2025/26

    Calculate your tax on salary, dividends, and savings income

    Important Notes:

    • This calculator uses 2025/26 tax year rates and thresholds
    • Personal allowance reduces by £1 for every £2 earned over £100,000
    • Dividend allowance is £500 (tax-free dividends)
    • Dividend tax rates: 8.75% (basic), 33.75% (higher), 39.35% (additional)
    • Savings allowance: £1,000 (basic rate), £500 (higher rate), £0 (additional rate)
    • Employee NI: 8% on £12,570-£50,270, then 2% above
    • No NI is payable on dividends or savings income
    • This is an estimate only - consult a tax professional for accurate advice

    Understanding Director Taxation

    Salary

    Your director's salary is subject to Income Tax and National Insurance. Many directors take a salary up to the NI threshold (£12,570) to maximize efficiency.

    Dividends

    Dividends are taxed differently and have no NI. You get a £500 tax-free allowance, then pay 8.75%, 33.75%, or 39.35% depending on your tax band.

    Savings

    Interest from savings is taxed based on your overall income. You may have a Personal Savings Allowance of up to £1,000.

    Disclaimer: This calculator provides estimates only and should not be considered as professional tax advice. Director remuneration strategies should be discussed with a qualified accountant. Corporation tax and employer's NI are not included in these calculations.

    Maximize Your Tax Efficiency

    Our accountants specialize in helping company directors optimize their remuneration strategy. Get expert advice on salary vs dividend splits and overall tax planning.

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