LimitedCompanyTaxCalculator
Updated for 2026/27

Employer NI calculator for directors 2026/27

Employer NI at 15% on director salary above £5,000 is a real company cost. This version highlights the employer NI figure alongside the salary cost and the personal take-home trade-off.

Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.

Calculate company tax Read the guides
15% employer NI rate£5,000 thresholdTrue company costTake-home trade-off
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,874 personal take-home / year £3,989/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,989
Total tax
£18,325
Effective rate
24.4%
Personal take-home£47,874
Dividend tax£4,696
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,696.25
Retained company cash£8,801.46
Personal take-home£47,873.75
Effective tax rate24.43%
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Quick answer

Calculate employer National Insurance on director salary 2026/27. 15% on salary above £5,000. See the true company cost and personal take-home trade-off.

Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.

Figures reviewed for the 2026/27 tax year (last updated July 2026). Source: GOV.UK.

About this calculator

Employer NI calculator for directors 2026/27: what it covers

This calculator focuses on the employer's National Insurance a limited company pays on a director's salary. Employer (secondary) National Insurance is charged at 15% on salary above the £5,000 secondary threshold. It is a company cost, entirely separate from the employee National Insurance and income tax the director pays personally.

This is why a salary of £12,570, chosen to use the full Personal Allowance, still triggers some employer National Insurance: the £5,000 secondary threshold is lower than the £12,570 the director is paid, so 15% applies to the slice between the two. Many single-director companies accept this small charge because the salary remains a deductible business expense.

The Employment Allowance, which can offset up to £10,500 of employer National Insurance, is generally not available to a company whose only employee is a single director. That exclusion is why the employer National Insurance on a sole director's salary usually cannot be wiped out, and it is a key reason directors weigh salary level against the resulting company cost.

Common questions

Employer NI calculator for directors 2026/27 — FAQs

How is employer National Insurance calculated on a director's salary?
Employer National Insurance is charged at 15% on the part of the salary above the £5,000 secondary threshold. On a £12,570 salary, that means 15% applies to the £7,570 above the threshold. The charge is paid by the company, not deducted from the director's pay.
Why does a £12,570 salary still create an employer NI bill?
The £12,570 salary level is chosen to match the Personal Allowance and avoid income tax, but the employer National Insurance secondary threshold is only £5,000. Because the salary sits above that threshold, the company pays 15% on the difference. This is a deliberate trade-off: the salary is still a deductible cost that reduces corporation tax.
Can a single-director company claim the Employment Allowance?
Generally no. A company whose only employee earning above the secondary threshold is a single director does not qualify for the Employment Allowance. This means the £10,500 offset that other employers use to reduce their employer National Insurance is usually not available, so the charge on the director's salary stands.
Does employer National Insurance reduce corporation tax?
Yes. Employer National Insurance is a deductible business expense, so it reduces the company's taxable profit and therefore its corporation tax bill. The net cost of the employer National Insurance is lower than the headline amount once that corporation tax saving is taken into account.
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Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - deposits up to £85,000 are FSCS protected. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day digital registration is £156. You can register directly at gov.uk or through a formation agent.