A director usually takes a small salary of around £12,570 plus dividends, so your take-home depends on two taxes — corporation tax on company profit (19%, a marginal band, then 25%) and dividend tax on what you draw (10.75% or 35.75% above the £500 allowance) — rather than income tax and National Insurance on the whole amount, the way a salaried employee is taxed. On those rules, a director with £30,000 of company profit keeps roughly £25,200; at £50,000 about £39,700; at £75,000 around £53,900; and at £100,000 about £65,700 for 2026/27. Those are illustrative figures, computed only from the published rates below — not a personal quote, and not a guaranteed saving. Below we work each one through so you can see where the money goes.
Figures are for the 2026/27 tax year (rUK) and sourced to gov.uk; they change at each Budget, and Scotland uses different Income Tax bands. Illustrative only — not personal advice.
How is a director's take-home actually built?
Take-home through a limited company is built in layers, and each layer is taxed differently. First comes a salary of around £12,570 — set at the personal allowance, it uses up your tax-free band, attracts little or no National Insurance, and counts as a deductible business expense for the company (gov.uk employer rates). Because the salary is deducted first, the company's remaining profit is what corporation tax is charged on.
Whatever profit is left after the salary is taxed at corporation tax — 19% on profits up to £50,000, an effective rate of about 26.5% on profit between £50,000 and £250,000, and 25% above £250,000 (gov.uk). Only the post-tax profit can then be paid out as dividends. Those dividends are taxed a second time, in your own hands: the first £500 is tax-free, then 10.75% while they sit in your basic-rate band and 35.75% once they cross into the higher-rate band at £50,270 (gov.uk). And dividends carry no National Insurance — the reason the salary-plus-dividends structure tends to beat drawing everything as salary. The trade-off is that profit is effectively taxed twice (once as corporation tax, once as dividend tax), which is why the headline rate you "pay" is rarely a single clean number.
What does a director take home at £30k, £50k, £75k and £100k (2026/27)?
The table below works the structure through at four levels of company profit, assuming a £12,570 salary, that all post-tax profit is drawn as dividends, and no other income. Read it as the shape of the maths, not your personal bill — your actual figure shifts with expenses, pension contributions, your exact split and any other income.
Company profit
Corporation tax
Dividends drawn
Dividend tax
Approx take-home
£30,000
~£3,310
~£14,120
~£1,460
~£25,200
£50,000
~£7,110
~£30,320
~£3,210
~£39,700
£75,000
~£12,790
~£49,640
~£8,270
~£53,900
£100,000
~£19,420
~£68,010
~£14,840
~£65,700
Illustrative, 2026/27 (rUK); your figures will differ.
Take the £75,000 row as a worked example. The £12,570 salary comes off first, leaving £62,430 of taxable profit. Corporation tax on that is 19% on the first £50,000 plus about 26.5% on the £12,430 above it — roughly £12,790 — because the profit reaches into the marginal-relief band. That leaves about £49,640 of post-tax profit to draw as dividends. The first £500 is tax-free; the rest fills the basic-rate band at 10.75% and the portion above £50,270 of total income is taxed at 35.75%, giving dividend tax of about £8,270. Add the salary and post-tax dividends, subtract the dividend tax, and the director keeps roughly £53,900. The same method produces every row.
Why does the £50,270 threshold matter?
The £50,270 threshold is where dividend tax jumps from 10.75% to 35.75%, so it has an outsized effect on take-home. In the £30k and £50k rows above, the dividends stay inside the basic-rate band and never touch the higher rate — which is why those directors keep a large share of every pound. From the £75k row up, dividends spill over £50,270 and the 35.75% rate starts to bite, so each extra £1,000 of profit converts into noticeably less take-home than it did lower down.
That single threshold is why directors plan the timing and size of dividends rather than simply drawing whatever the company can afford. Splitting a large dividend across two tax years, or holding profit back in the company (where it has already borne 19%–25% corporation tax) rather than drawing dividends you don't need yet, can keep more income inside the cheaper band. None of that is aggressive or hidden — it is ordinary planning within HMRC's rules. We cover the two taxes in their own right in our guides to dividend tax for 2026/27 and corporation tax for directors, and the mechanics of paying yourself in how to pay yourself from a limited company.
What changes the numbers — and the Scotland nuance?
Several things move these figures, and one of them changes the bands entirely. The biggest is where you live: the dividend rates are UK-wide, but Scotland sets its own Income Tax bands, which differ from the rest-of-UK thresholds used above (gov.uk). A Scottish director's basic-rate band and higher-rate starting point are not the £50,270 figure that drives the table, so the take-home maths shifts — get a Scotland-specific calculation rather than applying these rows.
Your allowable expenses also matter, because every legitimate cost reduces the profit corporation tax is charged on before any dividend question arises — our guide to what a limited company can claim sets out the categories. Employer pension contributions from the company can lower taxable profit too. The table also leaves out employer's National Insurance on the salary to keep the structure clear: a £12,570 salary costs the company around £1,100 in employer's NIC for 2026/27 unless it qualifies for the Employment Allowance — and most single-director companies do not (gov.uk). A full calculation factors that in, which is one more reason the real figure needs modelling. And the table assumes you draw all post-tax profit; if you take less, you pay less dividend tax now and leave money in the company for later. Any other income — a second job, rental, savings interest — stacks underneath your dividends and can push more of them into the higher band. The honest summary: the £30k–£100k figures here are a realistic illustration of the structure, not your statement of account. The director question that actually matters is what your split produces, and that needs modelling on your real numbers.
The figure directors actually want is what lands in their pocket — so rather than quoting a headline percentage, we model the salary-plus-dividends split with a partner accountant on your real figures. Go Limited guides the decision and matches you with a trusted partner accountant to do exactly that; we don't file your accounts ourselves. You can also start with our free 49-page guide or the accountancy overview.
How much does a director take home from a limited company?
It depends on profit and your salary/dividend split, but on the common £12,570-salary-plus-dividends structure for 2026/27, a director with about £30,000 of company profit keeps roughly £25,200, rising to around £39,700 at £50,000, £53,900 at £75,000 and £65,700 at £100,000. These are illustrative figures computed from published 2026/27 rates, not a personal quote — your expenses, other income and split all change them.
What's the most tax-efficient salary for a director in 2026/27?
Many directors set salary at around the £12,570 personal allowance: it uses the tax-free band, keeps National Insurance low, and is a deductible company expense, while the rest of the income comes as dividends. The exact optimum depends on whether your company can claim the Employment Allowance and on your wider circumstances, so it's worth having it checked against your numbers.
Do you pay National Insurance on dividends?
No — dividends carry no National Insurance. That is the main reason the salary-plus-dividends structure can leave a director with more take-home than drawing the same amount as salary, even after the dividend rates rose to 10.75% and 35.75% from 6 April 2026.
Is take-home better through a limited company than PAYE?
For a profitable director outside IR35 it often is, because dividends avoid National Insurance and you control the timing. But it isn't automatic: at low profit, or where IR35 applies, the saving can be small or disappear once you account for the admin and accountancy cost. It's a numbers question for your situation, not a guaranteed uplift.
Does take-home differ in Scotland?
Yes. Dividend tax rates are the same UK-wide, but Scotland sets its own Income Tax bands, so the thresholds that drive the salary and dividend maths differ from the rest-of-UK figures in this article. A Scottish director should use Scotland-specific bands rather than the £50,270 higher-rate point used above.
A director usually takes a small salary of around £12,570 plus dividends, so your take-home depends on two taxes — corporation tax on company profit (19%, a marginal band, then 25%) and dividend tax on what you draw (10.75% or 35.75% above the £500 allowance) — rather than income tax and National Insurance on the whole amount, the way a salaried employee is taxed. On those rules, a director with £30,000 of company profit keeps roughly £25,200; at £50,000 about £39,700; at £75,000 around £53,900; and at £100,000 about £65,700 for 2026/27. Those are illustrative figures, computed only from the published rates below — not a personal quote, and not a guaranteed saving. Below we work each one through so you can see where the money goes.
Figures are for the 2026/27 tax year (rUK) and sourced to gov.uk; they change at each Budget, and Scotland uses different Income Tax bands. Illustrative only — not personal advice.
How is a director's take-home actually built?
Take-home through a limited company is built in layers, and each layer is taxed differently. First comes a salary of around £12,570 — set at the personal allowance, it uses up your tax-free band, attracts little or no National Insurance, and counts as a deductible business expense for the company (gov.uk employer rates). Because the salary is deducted first, the company's remaining profit is what corporation tax is charged on.
Whatever profit is left after the salary is taxed at corporation tax — 19% on profits up to £50,000, an effective rate of about 26.5% on profit between £50,000 and £250,000, and 25% above £250,000 (gov.uk). Only the post-tax profit can then be paid out as dividends. Those dividends are taxed a second time, in your own hands: the first £500 is tax-free, then 10.75% while they sit in your basic-rate band and 35.75% once they cross into the higher-rate band at £50,270 (gov.uk). And dividends carry no National Insurance — the reason the salary-plus-dividends structure tends to beat drawing everything as salary. The trade-off is that profit is effectively taxed twice (once as corporation tax, once as dividend tax), which is why the headline rate you "pay" is rarely a single clean number.
What does a director take home at £30k, £50k, £75k and £100k (2026/27)?
The table below works the structure through at four levels of company profit, assuming a £12,570 salary, that all post-tax profit is drawn as dividends, and no other income. Read it as the shape of the maths, not your personal bill — your actual figure shifts with expenses, pension contributions, your exact split and any other income.
Company profit
Corporation tax
Dividends drawn
Dividend tax
Approx take-home
£30,000
~£3,310
~£14,120
~£1,460
~£25,200
£50,000
~£7,110
~£30,320
~£3,210
~£39,700
£75,000
~£12,790
~£49,640
~£8,270
~£53,900
£100,000
~£19,420
~£68,010
~£14,840
~£65,700
Illustrative, 2026/27 (rUK); your figures will differ.
Take the £75,000 row as a worked example. The £12,570 salary comes off first, leaving £62,430 of taxable profit. Corporation tax on that is 19% on the first £50,000 plus about 26.5% on the £12,430 above it — roughly £12,790 — because the profit reaches into the marginal-relief band. That leaves about £49,640 of post-tax profit to draw as dividends. The first £500 is tax-free; the rest fills the basic-rate band at 10.75% and the portion above £50,270 of total income is taxed at 35.75%, giving dividend tax of about £8,270. Add the salary and post-tax dividends, subtract the dividend tax, and the director keeps roughly £53,900. The same method produces every row.
Why does the £50,270 threshold matter?
The £50,270 threshold is where dividend tax jumps from 10.75% to 35.75%, so it has an outsized effect on take-home. In the £30k and £50k rows above, the dividends stay inside the basic-rate band and never touch the higher rate — which is why those directors keep a large share of every pound. From the £75k row up, dividends spill over £50,270 and the 35.75% rate starts to bite, so each extra £1,000 of profit converts into noticeably less take-home than it did lower down.
That single threshold is why directors plan the timing and size of dividends rather than simply drawing whatever the company can afford. Splitting a large dividend across two tax years, or holding profit back in the company (where it has already borne 19%–25% corporation tax) rather than drawing dividends you don't need yet, can keep more income inside the cheaper band. None of that is aggressive or hidden — it is ordinary planning within HMRC's rules. We cover the two taxes in their own right in our guides to dividend tax for 2026/27 and corporation tax for directors, and the mechanics of paying yourself in how to pay yourself from a limited company.
What changes the numbers — and the Scotland nuance?
Several things move these figures, and one of them changes the bands entirely. The biggest is where you live: the dividend rates are UK-wide, but Scotland sets its own Income Tax bands, which differ from the rest-of-UK thresholds used above (gov.uk). A Scottish director's basic-rate band and higher-rate starting point are not the £50,270 figure that drives the table, so the take-home maths shifts — get a Scotland-specific calculation rather than applying these rows.
Your allowable expenses also matter, because every legitimate cost reduces the profit corporation tax is charged on before any dividend question arises — our guide to what a limited company can claim sets out the categories. Employer pension contributions from the company can lower taxable profit too. The table also leaves out employer's National Insurance on the salary to keep the structure clear: a £12,570 salary costs the company around £1,100 in employer's NIC for 2026/27 unless it qualifies for the Employment Allowance — and most single-director companies do not (gov.uk). A full calculation factors that in, which is one more reason the real figure needs modelling. And the table assumes you draw all post-tax profit; if you take less, you pay less dividend tax now and leave money in the company for later. Any other income — a second job, rental, savings interest — stacks underneath your dividends and can push more of them into the higher band. The honest summary: the £30k–£100k figures here are a realistic illustration of the structure, not your statement of account. The director question that actually matters is what your split produces, and that needs modelling on your real numbers.
The figure directors actually want is what lands in their pocket — so rather than quoting a headline percentage, we model the salary-plus-dividends split with a partner accountant on your real figures. Go Limited guides the decision and matches you with a trusted partner accountant to do exactly that; we don't file your accounts ourselves. You can also start with our free 49-page guide or the accountancy overview.
How much does a director take home from a limited company?
It depends on profit and your salary/dividend split, but on the common £12,570-salary-plus-dividends structure for 2026/27, a director with about £30,000 of company profit keeps roughly £25,200, rising to around £39,700 at £50,000, £53,900 at £75,000 and £65,700 at £100,000. These are illustrative figures computed from published 2026/27 rates, not a personal quote — your expenses, other income and split all change them.
What's the most tax-efficient salary for a director in 2026/27?
Many directors set salary at around the £12,570 personal allowance: it uses the tax-free band, keeps National Insurance low, and is a deductible company expense, while the rest of the income comes as dividends. The exact optimum depends on whether your company can claim the Employment Allowance and on your wider circumstances, so it's worth having it checked against your numbers.
Do you pay National Insurance on dividends?
No — dividends carry no National Insurance. That is the main reason the salary-plus-dividends structure can leave a director with more take-home than drawing the same amount as salary, even after the dividend rates rose to 10.75% and 35.75% from 6 April 2026.
Is take-home better through a limited company than PAYE?
For a profitable director outside IR35 it often is, because dividends avoid National Insurance and you control the timing. But it isn't automatic: at low profit, or where IR35 applies, the saving can be small or disappear once you account for the admin and accountancy cost. It's a numbers question for your situation, not a guaranteed uplift.
Does take-home differ in Scotland?
Yes. Dividend tax rates are the same UK-wide, but Scotland sets its own Income Tax bands, so the thresholds that drive the salary and dividend maths differ from the rest-of-UK figures in this article. A Scottish director should use Scotland-specific bands rather than the £50,270 higher-rate point used above.
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