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Director salary calculator for 2026/27
See the Income Tax, National Insurance, take-home pay and cost to your company for a director's salary. Figures from gov.uk for the 2026/27 tax year.
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Updated 2026-11-13. Figures for the 2026/27 tax year.
Director's salary, 2026/27
Per yearBetween £6,708 and £12,570 you pay no employee National Insurance, but your National Insurance record is protected.
Ask about Director's PayrollAssumes no other income and English, Welsh or Northern Irish tax rates. Nothing you type leaves your browser.
- £5,000 secondary threshold: your company pays employer National Insurance at 15% on pay above it.Source: gov.uk
- £6,708 lower earnings limit: from here your National Insurance record is protected, even before you pay any.Source: gov.uk
- £12,570 primary threshold and Personal Allowance: above it you pay employee National Insurance at 8% and, with no other income, Income Tax at 20%.Source: gov.uk
- £50,270 upper earnings limit: employee National Insurance drops to 2% and Income Tax rises to 40%.Source: gov.uk
- £100,000: the Personal Allowance goes down by £1 for every £2 above it, and is zero at £125,140.Source: gov.uk
- £125,140: Income Tax of 45% on taxable income above it.Source: gov.uk
FAQ
Questions about director salary
Is this calculator right for my situation?
It works out one director's salary for 2026/27, assuming no other income, the standard Personal Allowance and the Income Tax rates for England, Wales and Northern Ireland. Scottish Income Tax rates are different. Dividends, pension contributions and student loans are not included.
Source: gov.ukWhy does the company pay National Insurance when I do not?
Employer National Insurance starts at £5,000 a year, the secondary threshold, at 15%. Employee National Insurance starts at £12,570, the primary threshold, at 8%. On a salary between the two, only the company pays.
Source: gov.ukIs a salary between £6,708 and £12,570 still on my National Insurance record?
HMRC says employees earning from £129 to £242 a week from one job usually pay no National Insurance, but their contributions are treated as paid to protect their National Insurance record.
Source: gov.ukCan my company claim Employment Allowance?
Not if the director is the only employee liable for secondary Class 1 National Insurance. If someone else is paid above £5,000, the company may be able to claim up to £10,500 a year. It reduces the company's whole employer National Insurance bill, so it is shared across everyone on payroll.
Source: gov.ukDo I need payroll to pay myself a salary?
Yes. If the company pays you a salary, it must register as an employer, take Income Tax and National Insurance from the salary and pay them to HMRC.
Source: gov.ukAre dividends included?
No. Dividends are paid to shareholders out of the company's profits, not through payroll, and they are taxed differently.
Source: gov.ukPut your salary on payroll
Director's Payroll is £12 a month for your first 2 directors, as an add-on to PayNinja's accountancy packages. RTI, payslips and the annual earnings period handled.