Calculator™ © - Free Online Calculators

Online Calculators since 2009

- Annual Salary Sacrifice Calculator
- Dividend Discount Model Calculator
- Accounting Rate of Return Calculator
- Adding Machine Calculator
- Absolute Change Calculator
- Percentage (Declining Balance) Depreciation Calculator
- Modified Internal Rate Of Return Calculator
- Yield To Call Calculator
- Payday Loan Calculator:
- Adjusted Present Value Calculator
- Ratio Calculator for Money and Shares

This calculator is designed for contractors and company directors to quickly assess the optimal breakdown of tax calculations to understand the best approach to their payroll solution. The calculator will balance Personal Allowance, Dividend Allowance and other tax metrics to provide a breakdown of tax and payroll deductions and your associated take home income.

Add this calculator to your website

With the introduction of new dividend calculations introduced by HMRC in 2016 via Thresholds and rates (similar to PAYE), dividends have become less attractive but still provide a more tax efficient solution than exclusive PAYE income which attracts National Insurance Contributions (NICs), Employers NICs mandatory company pension payments (if you are opted in to your company pension scheme).

PAYE is deducted before Corporation Tax (payroll is an operational expense) so there are slightly different calculations that you need to consider to make an informed decision as to which is the best tax solution for your total income (or sales generated - important semantics!). The Combined PAYE and Dividend Calculator does just that using the key elements to allow an informed decision. Note that this tool is a simplified version of the 2021 Holistic PAYE and Tax Calculator which allows you to refine your tax details and produce diverse reports / outputs.

Note that this calculator assumes you are an individual looking to calculate the most efficient tax solution. If you run a small company and are married etc. you may elect to make your partner a business partner, as a company director they can also be paid a salary and/or dividends depending on the nature of the company setup. Note that they must be actively involved in the day-to-day running of the company to legally warrant their income and you should be able to demonstrate this to HMRC if they query your accounts. If you are thinking of walking this route it is essential you get yourself a good accountant, have solid processes and company structure to underpin your accounting principals. There are plenty of good accountants around, if you prefer you can contact us and we can put you in touch with one of the accountants who contribute to the iCalculator project.

Next: 2021 Dividends Calculator

Previous: 2021 PAYE, Tax and Payroll Calculator

You may also find the following Finance calculators useful.

- Annual Interest Rate Calculator
- Earnings Before Interest Taxes Depreciation And Amortization Calculator
- Savings And Debt Comparison Calculator
- Earnings Per Share Calculator
- Limited Company Accountants
- Gross Domestic Product Calculator
- Present Value Of A Future Sum Calculator
- Payments Calculator
- Profit Calculator
- Discount Tire Calculator
- Perpetuity Calculator
- Bank Reconciliation Calculator
- Salary Sacrifice Calculator
- Student Budget Calculator
- Accounting Rate Of Return Calculator
- Retirement Ira Calculator
- Mortgage Calculator
- Rental Property Calculator
- Savings Calculator
- Average Payables Period Calculator