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Director Drawings Planner

Model how much your already-incorporated UK company needs to earn to deliver a target monthly take-home. 2026/27 rates.

£
£
The amount that lands in your account each month from PAYE. Dividends top up the rest to hit your target.
Advanced options (pension, other income)
£
£
Company-paid tax-allowable expenses (mileage, home office, vouchers)
These are legitimate expenses the company can pay you tax-free, reducing the profit the business needs to generate. They aren't extra take-home in the same sense — they're payments back for costs you've already incurred, or small benefits.
HMRC AMAP (April 2026): 55p/mile for first 10,000, then 25p/mile
HMRC flat rate: £6/week (no need to justify actual costs).
You may also be able to claim a proportional share of actual home running costs — often significantly more. Requires proper calculation. Speak to your accountant.
Non-cash, under £50 each, not a reward for services, not contractual
£
Total company expenses: £0

Three routes at your target

Where the business's money goes

Your take-home
Pension
HMRC personal tax
HMRC business tax
Employer NI

The split, at a glance

For every £100 the business costs, this is where it goes.

All Salary

Pros: Predictable. Counts as earnings for mortgage applications. Statutory rights (sick pay, holiday pay). Higher personal pension contribution headroom. No reliance on company profits.
Cons: 15% Employer NI above £5,000. Income Tax + Employee NI on top. Worst tax efficiency by a mile at most profit levels. Business needs to earn significantly more to deliver the same take-home.

Mixed (guaranteed salary + dividends)

Pros: A floor of guaranteed income regardless of profitability. Better mortgage story than pure dividends. Still tax-efficient on the balance. Balances risk against efficiency. Structurally more honest for most owners.
Cons: Needs annual planning to set the right guaranteed level. Still profit-dependent for the dividend portion.

All Dividends (with tax-efficient minimum salary)

Pros: Most tax-efficient route at most profit levels. Salary uses the £12,570 Personal Allowance tax-free. Lower total tax burden overall.
Cons: Dividends are LEGALLY payable only if the company is profitable. No profit means no dividends. Some mortgage lenders discount dividend income. Less personal pension headroom. Dividends stop the moment profits do.
Assumptions this tool makes
For information only. Not personal advice. Rates may change — always verify against gov.uk before making a decision. Mortgage lenders vary in how they treat dividend income — speak to your broker before choosing a route based on maximising take-home. Scottish taxpayers should treat these numbers as illustrative only.
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