Pay yourself \u00b7 Build It Backwards<\/title>\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin=\"\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Fraunces:opsz,wght@9..144,400;9..144,500&family=Inter:wght@400;500&family=Plus+Jakarta+Sans:wght@600;700&display=swap\" rel=\"stylesheet\">\n<style>\n :root{\n --ivory:#F6F0E6; --cream:#FCF8F1; --plum:#4A2C3B; --caramel:#BE8A5A; --caramelD:#9A6B3A;\n --rose:#C7A07A; --ink:#2B2328; --muted:#6E5F63; --faint:#B4A69F; --line:#E7D9C4;\n --sf:'Fraunces',Georgia,serif; --ss:'Inter',-apple-system,system-ui,sans-serif;\n }\n *{box-sizing:border-box}\n body{margin:0;background:var(--ivory);color:var(--ink);font-family:var(--ss);line-height:1.55;-webkit-font-smoothing:antialiased}\n .wrap{max-width:720px;margin:0 auto;padding:32px 20px 60px}\n .eye{font-size:11px;letter-spacing:.16em;text-transform:uppercase;color:var(--caramelD)}\n 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.eatoggle{display:flex;align-items:flex-start;gap:9px;font-size:12.5px;color:#2B2328;margin:14px 0 0;cursor:pointer}\n .eatoggle input{margin-top:2px;flex:none;width:16px;height:16px;accent-color:#BE8A5A}\n .eatoggle small{display:block;color:#8A7C80;font-size:11.5px;margin-top:3px;line-height:1.45}\n<\/style>\n<\/head>\n<body>\n<div class=\"wrap\">\n <div class=\"eye\">Build it backwards \u00b7 toolkit<\/div>\n <h1>Pay yourself<\/h1>\n <p class=\"lede\">The two ways money leaves a limited company, salary and dividends, made clear. Play with it to see what lands in your pocket and what stays in the business.<\/p>\n <p class=\"periodnote\">Heads up: every figure here is a year at a time, unless it says a month.<\/p>\n\n <div class=\"toggle structbar\" id=\"structure\">\n <button data-s=\"ltd\" class=\"on\">Limited company<\/button>\n <button data-s=\"sole\">Sole trader<\/button>\n <\/div>\n\n <div class=\"card\">\n <div class=\"n\">Start with<\/div>\n <h2>Your business profit<\/h2>\n <p class=\"note\">What your business makes in a year, before you pay yourself anything. This is not the same as what you take, that comes next.<\/p>\n <div class=\"field\"><label>Yearly profit<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"profit\" type=\"number\" min=\"0\" step=\"1000\" value=\"60000\"><\/div><\/div>\n <div class=\"from\" id=\"profitFrom\">Not done the audit yet? <a class=\"auditbtn\" href=\"quality-of-life-audit.html\">Do the quality of life audit<\/a> or just type your profit in above.<\/div>\n <\/div>\n\n <div class=\"card\" id=\"salaryCard\" style=\"display: block;\">\n <div class=\"n\">Route 1 \u00b7 through payroll<\/div>\n <h2>Your salary<\/h2>\n <p class=\"note\">A small salary builds your state pension, keeps maternity and mortgage options open, and is tax-deductible for the company. There are three sensible levels this year.<\/p>\n <div class=\"field\"><label>Annual salary<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"salary\" type=\"number\" min=\"0\" step=\"100\" value=\"12570\"><\/div><\/div>\n <div class=\"chips\" id=\"salaryChips\">\n <button data-v=\"12570\" class=\"on\"><span class=\"amt\">\u00a312,570<\/span><span class=\"lab\">full personal allowance, most common<\/span><\/button>\n <button data-v=\"6708\"><span class=\"amt\">\u00a36,708<\/span><span class=\"lab\">protects your state pension<\/span><\/button>\n <button data-v=\"5000\"><span class=\"amt\">\u00a35,000<\/span><span class=\"lab\">no employer NI<\/span><\/button>\n <\/div>\n <div class=\"why\" id=\"salaryWhy\">You are using your full tax-free personal allowance. Employer NI applies above \u00a35,000, and a single-director company does not qualify for the Employment Allowance, but the salary is tax-deductible for the company, so this is usually the most efficient overall.<\/div>\n <label class=\"eatoggle\"><input type=\"checkbox\" id=\"eaChk\"><span>My company can claim the Employment Allowance<small>Only if it has employees beyond a single director. A sole director with no other staff cannot claim it.<\/small><\/span><\/label>\n <\/div>\n\n <div class=\"card\" id=\"divCard\" style=\"display: block;\">\n <div class=\"n\">Route 2 \u00b7 from profit after tax<\/div>\n <h2>Your dividends<\/h2>\n <p class=\"note\">A dividend is a share of the profit left after the company has paid its corporation tax. You do not have to take it all. Leaving some in the business, retained profit, gives you a buffer and money to reinvest.<\/p>\n <div class=\"avail\"><span>Profit available to take as dividends (a year)<\/span><b id=\"distributable\">\u00a337,499<\/b><\/div>\n <div class=\"toggle\" id=\"extract\">\n <button data-e=\"all\" class=\"on\">Take all of it<\/button>\n <button data-e=\"some\">Choose how much<\/button>\n <\/div>\n <div class=\"field\" id=\"divField\" style=\"display:none\"><label>Dividends you take this year<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"dividends\" type=\"number\" min=\"0\" step=\"500\" value=\"0\"><\/div><\/div>\n <div class=\"retline\"><span>Left in the company (a year)<\/span><b id=\"retained\">\u00a30<\/b><\/div>\n <div class=\"warn\" id=\"divWarn\" style=\"display:none\"><\/div>\n <\/div>\n\n <div class=\"where\">\n <div class=\"wheretitle\" id=\"whereTitle\">Where your \u00a360,000 of profit goes<\/div>\n <div class=\"moneybar\" id=\"moneybar\"><div class=\"seg you\" style=\"width:76.81866902083333%\"><\/div><div class=\"seg hmrc\" style=\"width:23.181330979166667%\"><\/div><\/div>\n <div class=\"buckets\" id=\"buckets\"><div class=\"bucket you\"><span class=\"dot\"><\/span><div class=\"cap\">To you<\/div><div class=\"big\">\u00a346,091<\/div><div class=\"pct\">77% of profit<\/div><div class=\"sub\">a year, after tax \u00b7 \u00a33,841 a month<\/div><\/div><div class=\"bucket hmrc\"><span class=\"dot\"><\/span><div class=\"cap\">To HMRC<\/div><div class=\"big\">\u00a313,909<\/div><div class=\"pct\">23% of profit<\/div><div class=\"sub\">a year, all your taxes<\/div><\/div><\/div>\n <button class=\"detailtoggle\" id=\"detailToggle\">See every step of the maths<\/button>\n <div class=\"reccap\" id=\"reccap\" style=\"display:none\">Your full year, step by step<\/div>\n <div class=\"receipt\" id=\"receipt\" style=\"display:none\"><div class=\"r\"><span>Company profit<\/span><b>\u00a360,000<\/b><\/div><div class=\"r\"><span>Your salary<\/span><b>-\u00a312,570<\/b><\/div><div class=\"r\"><span>Employer NI<\/span><b>-\u00a31,136<\/b><\/div><div class=\"r\"><span>Corporation tax<\/span><b>-\u00a38,796<\/b><\/div><div class=\"r\"><span>Available for dividends<\/span><b>\u00a337,499<\/b><\/div><div class=\"r\"><span>Dividends you take<\/span><b>-\u00a337,499<\/b><\/div><div class=\"r\"><span>Left in the company<\/span><b>\u00a30<\/b><\/div><div class=\"r\"><span>Salary in your pocket<\/span><b>\u00a312,570<\/b><\/div><div class=\"r\"><span>Dividends in your pocket<\/span><b>\u00a333,521<\/b><\/div><div class=\"r tot\"><span>Your take-home<\/span><b>\u00a346,091<\/b><\/div><\/div>\n <\/div>\n\n <div class=\"toDash\">\n <div class=\"t\"><b>Send this to your dashboard.<\/b> Set your monthly pay so the dashboard knows what you plan to take.<\/div>\n <button id=\"sendDash\">Add to dashboard<\/button>\n <span class=\"done\" id=\"dashDone\" style=\"display:none\"><\/span>\n <\/div>\n\n <div class=\"strivex\">\n <div class=\"k\">Build it backwards \u00b7 striveX<\/div>\n <h3>Want this set up and run for you?<\/h3>\n <p>Payroll, dividends and the paperwork that goes with them are exactly what we handle for you at striveX.<\/p>\n <a class=\"cta\" href=\"https:\/\/strivex.co.uk\/become-a-client-accounting\/\" target=\"_blank\" rel=\"noopener\">Become a client<\/a>\n <\/div>\n\n <p class=\"foot\">A guide for the standard single-director setup on 2026\/27 rates, not personal advice. Confirm with your accountant. Your numbers stay in your own browser.<\/p>\n<\/div>\n\n<script>\n \/\/ Verified against gov.uk rates and thresholds for employers 2026 to 2027\n var CONFIG={\n personalAllowance:12570, basicRateLimit:50270, higherRateLimit:125140,\n incomeTax:{basic:0.20,higher:0.40,additional:0.45},\n class4:{lower:12570,upper:50270,main:0.06,upperRate:0.02},\n class1:{primary:12570,upper:50270,main:0.08,upperRate:0.02},\n corp:{smallLimit:50000,mainLimit:250000,small:0.19,main:0.25,marginalFraction:0.015},\n dividend:{allowance:500,basic:0.1075,higher:0.3575,additional:0.3935},\n employerNI:{rate:0.15,secondaryThreshold:5000}, lel:6708\n };\n function gbp(n){ return '\\u00A3' + Math.round(n).toLocaleString('en-GB'); }\n function num(id){ var e=document.getElementById(id); var n=parseFloat(e.value); return (isNaN(n)||n<0)?0:n; }\n var structure='ltd', extract='all', EA=false;\n\n function incomeTax(income){\n var a=income<=100000?CONFIG.personalAllowance:Math.max(0,CONFIG.personalAllowance-(income-100000)\/2);\n var t=Math.max(0,income-a), bb=CONFIG.basicRateLimit-CONFIG.personalAllowance, hb=CONFIG.higherRateLimit-CONFIG.basicRateLimit, tax=0;\n tax+=Math.min(t,bb)*CONFIG.incomeTax.basic;\n if(t>bb) tax+=Math.min(t-bb,hb)*CONFIG.incomeTax.higher;\n if(t>bb+hb) tax+=(t-bb-hb)*CONFIG.incomeTax.additional;\n return tax;\n }\n function class4(p){ var c=CONFIG.class4,t=0; if(p>c.lower)t+=(Math.min(p,c.upper)-c.lower)*c.main; if(p>c.upper)t+=(p-c.upper)*c.upperRate; return t; }\n function class1(sal){ var c=CONFIG.class1,t=0; if(sal>c.primary)t+=(Math.min(sal,c.upper)-c.primary)*c.main; if(sal>c.upper)t+=(sal-c.upper)*c.upperRate; return t; }\n function corpTax(p){ var c=CONFIG.corp; if(p<=0)return 0; if(p<=c.smallLimit)return p*c.small; if(p>=c.mainLimit)return p*c.main; return p*c.main-(c.mainLimit-p)*c.marginalFraction; }\n function dividendTax(div,salary){\n var base=Math.max(salary,CONFIG.personalAllowance);\n var basicRoom=Math.max(0,CONFIG.basicRateLimit-base), higherRoom=CONFIG.higherRateLimit-CONFIG.basicRateLimit;\n var taxable=Math.max(0,div-CONFIG.dividend.allowance);\n var dB=Math.min(taxable,basicRoom), dH=Math.min(Math.max(taxable-basicRoom,0),higherRoom), dA=Math.max(taxable-basicRoom-higherRoom,0);\n return dB*CONFIG.dividend.basic+dH*CONFIG.dividend.higher+dA*CONFIG.dividend.additional;\n }\n\n function computeLtd(){\n var profit=num('profit'), wanted=Math.min(num('salary'),profit);\n var stThr=CONFIG.employerNI.secondaryThreshold, eRate=CONFIG.employerNI.rate;\n var effRate = EA ? 0 : eRate;\n \/\/ cap the salary so salary + employer's NI on it cannot exceed the profit the company has\n var salary=wanted, salaryCapped=false;\n if(wanted + Math.max(0,wanted-stThr)*effRate > profit){\n salaryCapped=true;\n salary = profit<=stThr ? profit : (profit + stThr*eRate)\/(1+eRate);\n }\n var eniGross=Math.max(0,salary-stThr)*eRate;\n var eni = EA ? 0 : eniGross;\n var ctP=Math.max(0,profit-salary-eni), corp=corpTax(ctP), distributable=Math.max(0,ctP-corp);\n var dividends = extract==='all' ? distributable : Math.min(num('dividends'), distributable);\n var retained = distributable - dividends;\n var itSal=incomeTax(salary), eeNI=class1(salary), divTax=dividendTax(dividends,salary);\n var take = salary - itSal - eeNI + dividends - divTax;\n return {profit:profit,salary:salary,salaryCapped:salaryCapped,eni:eni,eniGross:eniGross,corp:corp,distributable:distributable,dividends:dividends,retained:retained,itSal:itSal,eeNI:eeNI,divTax:divTax,take:take};\n }\n function computeSole(){ var p=num('profit'), it=incomeTax(p), ni=class4(p); return {profit:p,it:it,ni:ni,take:p-it-ni,retained:0}; }\n\n function pullProfit(){\n var found=false;\n try{ var d=JSON.parse(localStorage.getItem('bib_dashboard')); if(d&&d.foundations&&d.foundations.yourNumber){ document.getElementById('profit').value=Math.round(d.foundations.yourNumber*12); found=true; } }catch(e){}\n var el=document.getElementById('profitFrom');\n if(found){ el.innerHTML='Based on Your Number from your audit. Adjust it above if your profit is different.'; }\n else { el.innerHTML='Not done the audit yet? <a class=\"auditbtn\" href=\"quality-of-life-audit.html\">Do the quality of life audit<\/a> or just type your profit in above.'; }\n }\n pullProfit();\n\n function salaryWhy(salary){\n if(salary<=5000) return 'At \u00a35,000 or below there is no employer NI to pay. But this is under the \u00a36,708 lower earnings limit, so this year would not count towards your state pension.';\n if(salary<=6708) return 'This protects a state pension year, as it is at or above the \u00a36,708 lower earnings limit. A little employer NI is due on the part above \u00a35,000.';\n if(salary<=12570) return 'You are using your full tax-free personal allowance. Employer NI applies above \u00a35,000, and a single-director company does not qualify for the Employment Allowance, but the salary is tax-deductible for the company, so this is usually the most efficient overall.';\n return 'Above \u00a312,570 you start paying income tax and employee NI on your salary, which is usually less efficient than taking the same money as dividends.';\n }\n\n function render(){\n document.getElementById('salaryCard').style.display = structure==='ltd'?'block':'none';\n document.getElementById('divCard').style.display = structure==='ltd'?'block':'none';\n var rc=document.getElementById('receipt'); rc.innerHTML='';\n var take, retained=0, tax=0, profit=0;\n\n if(structure==='ltd'){\n var r=computeLtd(); take=r.take; retained=r.retained; tax=r.eni+r.corp+r.itSal+r.eeNI+r.divTax; profit=r.profit;\n document.getElementById('distributable').textContent=gbp(r.distributable);\n document.getElementById('retained').textContent=gbp(r.retained);\n document.getElementById('divField').style.display = extract==='some'?'flex':'none';\n document.querySelectorAll('#salaryChips button').forEach(function(b){ b.classList.toggle('on', +b.getAttribute('data-v')===num('salary')); });\n document.getElementById('salaryWhy').textContent=(r.salaryCapped?('Your company only has '+gbp(r.profit)+' of profit, so the salary is capped at '+gbp(r.salary)+' once employer\\u2019s NI is covered. '):'')+salaryWhy(num('salary'));\n var warn=document.getElementById('divWarn');\n if(extract==='some' && num('dividends')>r.distributable){ warn.style.display='block'; warn.textContent='You cannot take more in dividends than there is profit after tax. Taking more would count as a director\\u2019s loan you have to pay back. I have capped it at '+gbp(r.distributable)+'.'; }\n else warn.style.display='none';\n rc.innerHTML =\n row('Company profit', r.profit) +\n row('Your salary', -r.salary,'sub') +\n row(EA?'Employer NI (covered by Employment Allowance)':'Employer NI', -r.eni,'sub') +\n row('Corporation tax', -r.corp,'sub') +\n row('Available for dividends', r.distributable) +\n row('Dividends you take', -r.dividends,'sub') +\n row('Left in the company', r.retained) +\n divider() +\n row('Salary in your pocket', r.salary-r.itSal-r.eeNI) +\n row('Dividends in your pocket', r.dividends-r.divTax) +\n row('Your take-home', r.take, 'tot');\n } else {\n var s=computeSole(); take=s.take; retained=0; tax=s.it+s.ni; profit=s.profit;\n rc.innerHTML =\n row('Your profit', s.profit) +\n row('Income tax', -s.it,'sub') +\n row('Class 4 National Insurance', -s.ni,'sub') +\n row('Your take-home', s.take,'tot');\n }\n renderWhere(take, tax, retained, profit);\n }\n function row(label,val,cls){ var c=cls==='tot'?' tot':''; return '<div class=\"r'+c+'\"><span>'+label+'<\/span><b>'+(val<0?'-'+gbp(-val):gbp(val))+'<\/b><\/div>'; }\n function divider(){ return ''; }\n function renderWhere(you, tax, company, profit){\n document.getElementById('whereTitle').textContent='Where your '+gbp(profit)+' of profit goes';\n var total=Math.max(profit,1);\n var segs=[{k:'you',label:'To you',v:Math.max(0,you)},{k:'hmrc',label:'To HMRC',v:Math.max(0,tax)}];\n if(company>0.5) segs.push({k:'co',label:'Stays in the company',v:company});\n var bar=document.getElementById('moneybar'); bar.innerHTML='';\n segs.forEach(function(s){ bar.innerHTML+='<div class=\"seg '+s.k+'\" style=\"width:'+(s.v\/total*100)+'%\"><\/div>'; });\n var subs={you:'a year, after tax', hmrc:'a year, all your taxes', co:'a year, your buffer and to reinvest'};\n var b=document.getElementById('buckets'); b.innerHTML='';\n segs.forEach(function(s){\n var pct=Math.round(s.v\/total*100);\n var extra = s.k==='you' ? (' \\u00B7 '+gbp(you\/12)+' a month') : '';\n b.innerHTML+='<div class=\"bucket '+s.k+'\"><span class=\"dot\"><\/span><div class=\"cap\">'+s.label+'<\/div><div class=\"big\">'+gbp(s.v)+'<\/div><div class=\"pct\">'+pct+'% of profit<\/div><div class=\"sub\">'+subs[s.k]+extra+'<\/div><\/div>';\n });\n }\n\n document.querySelectorAll('#structure button').forEach(function(b){\n b.addEventListener('click',function(){ document.querySelectorAll('#structure button').forEach(function(x){x.classList.remove('on');}); b.classList.add('on'); structure=b.getAttribute('data-s'); render(); });\n });\n document.querySelectorAll('#salaryChips button').forEach(function(b){\n b.addEventListener('click',function(){ document.getElementById('salary').value=b.getAttribute('data-v'); render(); });\n });\n document.querySelectorAll('#extract button').forEach(function(b){\n b.addEventListener('click',function(){ document.querySelectorAll('#extract button').forEach(function(x){x.classList.remove('on');}); b.classList.add('on'); extract=b.getAttribute('data-e');\n if(extract==='some'){ var r=computeLtd(); if(num('dividends')===0) document.getElementById('dividends').value=Math.round(r.distributable); }\n render(); });\n });\n document.getElementById('eaChk').addEventListener('change',function(){ EA=this.checked; render(); });\n document.querySelectorAll('input').forEach(function(i){ i.addEventListener('input',render); });\n\n document.getElementById('detailToggle').addEventListener('click',function(){\n var r=document.getElementById('receipt'), c=document.getElementById('reccap'), open=r.style.display!=='none';\n r.style.display=open?'none':'block'; c.style.display=open?'none':'block';\n this.textContent=open?'See every step of the maths':'Hide the detail';\n });\n\n document.getElementById('sendDash').addEventListener('click',function(){\n var take = structure==='ltd'?computeLtd().take:computeSole().take, ok=false;\n try{ var d=JSON.parse(localStorage.getItem('bib_dashboard'))||{foundations:{},week:{},history:[]}; if(!d.foundations)d.foundations={}; d.foundations.payTarget=Math.round(take\/12); localStorage.setItem('bib_dashboard',JSON.stringify(d)); ok=true; }catch(e){ok=false;}\n var done=document.getElementById('dashDone'); done.style.display='inline';\n done.textContent = ok?('\\u2713 Added '+gbp(take\/12)+' as your monthly pay'):('Saved for this session. It will sync once hosted.');\n });\n\n render();\n<\/script>\n\n\n<\/body><\/html>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Pay yourself \u00b7 Build It Backwards Build it backwards \u00b7 toolkit Pay yourself The two ways money leaves a limited company, salary and dividends, made clear. Play with it to see what lands in your pocket and what stays in the business. Heads up: every figure here is a year at a time, unless it […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_eb_attr":"","_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"class_list":["post-3172","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/comments?post=3172"}],"version-history":[{"count":11,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172\/revisions"}],"predecessor-version":[{"id":3410,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172\/revisions\/3410"}],"wp:attachment":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/media?parent=3172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}

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\n\t\t\t\t\t\n\n\nPay yourself \u00b7 Build It Backwards<\/title>\n<link rel=\"preconnect\" href=\"https:\/\/fonts.googleapis.com\">\n<link rel=\"preconnect\" href=\"https:\/\/fonts.gstatic.com\" crossorigin=\"\">\n<link href=\"https:\/\/fonts.googleapis.com\/css2?family=Fraunces:opsz,wght@9..144,400;9..144,500&family=Inter:wght@400;500&family=Plus+Jakarta+Sans:wght@600;700&display=swap\" rel=\"stylesheet\">\n<style>\n :root{\n --ivory:#F6F0E6; --cream:#FCF8F1; --plum:#4A2C3B; --caramel:#BE8A5A; --caramelD:#9A6B3A;\n --rose:#C7A07A; --ink:#2B2328; --muted:#6E5F63; --faint:#B4A69F; --line:#E7D9C4;\n --sf:'Fraunces',Georgia,serif; --ss:'Inter',-apple-system,system-ui,sans-serif;\n }\n *{box-sizing:border-box}\n body{margin:0;background:var(--ivory);color:var(--ink);font-family:var(--ss);line-height:1.55;-webkit-font-smoothing:antialiased}\n .wrap{max-width:720px;margin:0 auto;padding:32px 20px 60px}\n 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.eatoggle{display:flex;align-items:flex-start;gap:9px;font-size:12.5px;color:#2B2328;margin:14px 0 0;cursor:pointer}\n .eatoggle input{margin-top:2px;flex:none;width:16px;height:16px;accent-color:#BE8A5A}\n .eatoggle small{display:block;color:#8A7C80;font-size:11.5px;margin-top:3px;line-height:1.45}\n<\/style>\n<\/head>\n<body>\n<div class=\"wrap\">\n <div class=\"eye\">Build it backwards \u00b7 toolkit<\/div>\n <h1>Pay yourself<\/h1>\n <p class=\"lede\">The two ways money leaves a limited company, salary and dividends, made clear. Play with it to see what lands in your pocket and what stays in the business.<\/p>\n <p class=\"periodnote\">Heads up: every figure here is a year at a time, unless it says a month.<\/p>\n\n <div class=\"toggle structbar\" id=\"structure\">\n <button data-s=\"ltd\" class=\"on\">Limited company<\/button>\n <button data-s=\"sole\">Sole trader<\/button>\n <\/div>\n\n <div class=\"card\">\n <div class=\"n\">Start with<\/div>\n <h2>Your business profit<\/h2>\n <p class=\"note\">What your business makes in a year, before you pay yourself anything. This is not the same as what you take, that comes next.<\/p>\n <div class=\"field\"><label>Yearly profit<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"profit\" type=\"number\" min=\"0\" step=\"1000\" value=\"60000\"><\/div><\/div>\n <div class=\"from\" id=\"profitFrom\">Not done the audit yet? <a class=\"auditbtn\" href=\"quality-of-life-audit.html\">Do the quality of life audit<\/a> or just type your profit in above.<\/div>\n <\/div>\n\n <div class=\"card\" id=\"salaryCard\" style=\"display: block;\">\n <div class=\"n\">Route 1 \u00b7 through payroll<\/div>\n <h2>Your salary<\/h2>\n <p class=\"note\">A small salary builds your state pension, keeps maternity and mortgage options open, and is tax-deductible for the company. There are three sensible levels this year.<\/p>\n <div class=\"field\"><label>Annual salary<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"salary\" type=\"number\" min=\"0\" step=\"100\" value=\"12570\"><\/div><\/div>\n <div class=\"chips\" id=\"salaryChips\">\n <button data-v=\"12570\" class=\"on\"><span class=\"amt\">\u00a312,570<\/span><span class=\"lab\">full personal allowance, most common<\/span><\/button>\n <button data-v=\"6708\"><span class=\"amt\">\u00a36,708<\/span><span class=\"lab\">protects your state pension<\/span><\/button>\n <button data-v=\"5000\"><span class=\"amt\">\u00a35,000<\/span><span class=\"lab\">no employer NI<\/span><\/button>\n <\/div>\n <div class=\"why\" id=\"salaryWhy\">You are using your full tax-free personal allowance. Employer NI applies above \u00a35,000, and a single-director company does not qualify for the Employment Allowance, but the salary is tax-deductible for the company, so this is usually the most efficient overall.<\/div>\n <label class=\"eatoggle\"><input type=\"checkbox\" id=\"eaChk\"><span>My company can claim the Employment Allowance<small>Only if it has employees beyond a single director. A sole director with no other staff cannot claim it.<\/small><\/span><\/label>\n <\/div>\n\n <div class=\"card\" id=\"divCard\" style=\"display: block;\">\n <div class=\"n\">Route 2 \u00b7 from profit after tax<\/div>\n <h2>Your dividends<\/h2>\n <p class=\"note\">A dividend is a share of the profit left after the company has paid its corporation tax. You do not have to take it all. Leaving some in the business, retained profit, gives you a buffer and money to reinvest.<\/p>\n <div class=\"avail\"><span>Profit available to take as dividends (a year)<\/span><b id=\"distributable\">\u00a337,499<\/b><\/div>\n <div class=\"toggle\" id=\"extract\">\n <button data-e=\"all\" class=\"on\">Take all of it<\/button>\n <button data-e=\"some\">Choose how much<\/button>\n <\/div>\n <div class=\"field\" id=\"divField\" style=\"display:none\"><label>Dividends you take this year<\/label><div class=\"in\"><span class=\"pre\">\u00a3<\/span><input id=\"dividends\" type=\"number\" min=\"0\" step=\"500\" value=\"0\"><\/div><\/div>\n <div class=\"retline\"><span>Left in the company (a year)<\/span><b id=\"retained\">\u00a30<\/b><\/div>\n <div class=\"warn\" id=\"divWarn\" style=\"display:none\"><\/div>\n <\/div>\n\n <div class=\"where\">\n <div class=\"wheretitle\" id=\"whereTitle\">Where your \u00a360,000 of profit goes<\/div>\n <div class=\"moneybar\" id=\"moneybar\"><div class=\"seg you\" style=\"width:76.81866902083333%\"><\/div><div class=\"seg hmrc\" style=\"width:23.181330979166667%\"><\/div><\/div>\n <div class=\"buckets\" id=\"buckets\"><div class=\"bucket you\"><span class=\"dot\"><\/span><div class=\"cap\">To you<\/div><div class=\"big\">\u00a346,091<\/div><div class=\"pct\">77% of profit<\/div><div class=\"sub\">a year, after tax \u00b7 \u00a33,841 a month<\/div><\/div><div class=\"bucket hmrc\"><span class=\"dot\"><\/span><div class=\"cap\">To HMRC<\/div><div class=\"big\">\u00a313,909<\/div><div class=\"pct\">23% of profit<\/div><div class=\"sub\">a year, all your taxes<\/div><\/div><\/div>\n <button class=\"detailtoggle\" id=\"detailToggle\">See every step of the maths<\/button>\n <div class=\"reccap\" id=\"reccap\" style=\"display:none\">Your full year, step by step<\/div>\n <div class=\"receipt\" id=\"receipt\" style=\"display:none\"><div class=\"r\"><span>Company profit<\/span><b>\u00a360,000<\/b><\/div><div class=\"r\"><span>Your salary<\/span><b>-\u00a312,570<\/b><\/div><div class=\"r\"><span>Employer NI<\/span><b>-\u00a31,136<\/b><\/div><div class=\"r\"><span>Corporation tax<\/span><b>-\u00a38,796<\/b><\/div><div class=\"r\"><span>Available for dividends<\/span><b>\u00a337,499<\/b><\/div><div class=\"r\"><span>Dividends you take<\/span><b>-\u00a337,499<\/b><\/div><div class=\"r\"><span>Left in the company<\/span><b>\u00a30<\/b><\/div><div class=\"r\"><span>Salary in your pocket<\/span><b>\u00a312,570<\/b><\/div><div class=\"r\"><span>Dividends in your pocket<\/span><b>\u00a333,521<\/b><\/div><div class=\"r tot\"><span>Your take-home<\/span><b>\u00a346,091<\/b><\/div><\/div>\n <\/div>\n\n <div class=\"toDash\">\n <div class=\"t\"><b>Send this to your dashboard.<\/b> Set your monthly pay so the dashboard knows what you plan to take.<\/div>\n <button id=\"sendDash\">Add to dashboard<\/button>\n <span class=\"done\" id=\"dashDone\" style=\"display:none\"><\/span>\n <\/div>\n\n <div class=\"strivex\">\n <div class=\"k\">Build it backwards \u00b7 striveX<\/div>\n <h3>Want this set up and run for you?<\/h3>\n <p>Payroll, dividends and the paperwork that goes with them are exactly what we handle for you at striveX.<\/p>\n <a class=\"cta\" href=\"https:\/\/strivex.co.uk\/become-a-client-accounting\/\" target=\"_blank\" rel=\"noopener\">Become a client<\/a>\n <\/div>\n\n <p class=\"foot\">A guide for the standard single-director setup on 2026\/27 rates, not personal advice. Confirm with your accountant. Your numbers stay in your own browser.<\/p>\n<\/div>\n\n<script>\n \/\/ Verified against gov.uk rates and thresholds for employers 2026 to 2027\n var CONFIG={\n personalAllowance:12570, basicRateLimit:50270, higherRateLimit:125140,\n incomeTax:{basic:0.20,higher:0.40,additional:0.45},\n class4:{lower:12570,upper:50270,main:0.06,upperRate:0.02},\n class1:{primary:12570,upper:50270,main:0.08,upperRate:0.02},\n corp:{smallLimit:50000,mainLimit:250000,small:0.19,main:0.25,marginalFraction:0.015},\n dividend:{allowance:500,basic:0.1075,higher:0.3575,additional:0.3935},\n employerNI:{rate:0.15,secondaryThreshold:5000}, lel:6708\n };\n function gbp(n){ return '\\u00A3' + Math.round(n).toLocaleString('en-GB'); }\n function num(id){ var e=document.getElementById(id); var n=parseFloat(e.value); return (isNaN(n)||n<0)?0:n; }\n var structure='ltd', extract='all', EA=false;\n\n function incomeTax(income){\n var a=income<=100000?CONFIG.personalAllowance:Math.max(0,CONFIG.personalAllowance-(income-100000)\/2);\n var t=Math.max(0,income-a), bb=CONFIG.basicRateLimit-CONFIG.personalAllowance, hb=CONFIG.higherRateLimit-CONFIG.basicRateLimit, tax=0;\n tax+=Math.min(t,bb)*CONFIG.incomeTax.basic;\n if(t>bb) tax+=Math.min(t-bb,hb)*CONFIG.incomeTax.higher;\n if(t>bb+hb) tax+=(t-bb-hb)*CONFIG.incomeTax.additional;\n return tax;\n }\n function class4(p){ var c=CONFIG.class4,t=0; if(p>c.lower)t+=(Math.min(p,c.upper)-c.lower)*c.main; if(p>c.upper)t+=(p-c.upper)*c.upperRate; return t; }\n function class1(sal){ var c=CONFIG.class1,t=0; if(sal>c.primary)t+=(Math.min(sal,c.upper)-c.primary)*c.main; if(sal>c.upper)t+=(sal-c.upper)*c.upperRate; return t; }\n function corpTax(p){ var c=CONFIG.corp; if(p<=0)return 0; if(p<=c.smallLimit)return p*c.small; if(p>=c.mainLimit)return p*c.main; return p*c.main-(c.mainLimit-p)*c.marginalFraction; }\n function dividendTax(div,salary){\n var base=Math.max(salary,CONFIG.personalAllowance);\n var basicRoom=Math.max(0,CONFIG.basicRateLimit-base), higherRoom=CONFIG.higherRateLimit-CONFIG.basicRateLimit;\n var taxable=Math.max(0,div-CONFIG.dividend.allowance);\n var dB=Math.min(taxable,basicRoom), dH=Math.min(Math.max(taxable-basicRoom,0),higherRoom), dA=Math.max(taxable-basicRoom-higherRoom,0);\n return dB*CONFIG.dividend.basic+dH*CONFIG.dividend.higher+dA*CONFIG.dividend.additional;\n }\n\n function computeLtd(){\n var profit=num('profit'), wanted=Math.min(num('salary'),profit);\n var stThr=CONFIG.employerNI.secondaryThreshold, eRate=CONFIG.employerNI.rate;\n var effRate = EA ? 0 : eRate;\n \/\/ cap the salary so salary + employer's NI on it cannot exceed the profit the company has\n var salary=wanted, salaryCapped=false;\n if(wanted + Math.max(0,wanted-stThr)*effRate > profit){\n salaryCapped=true;\n salary = profit<=stThr ? profit : (profit + stThr*eRate)\/(1+eRate);\n }\n var eniGross=Math.max(0,salary-stThr)*eRate;\n var eni = EA ? 0 : eniGross;\n var ctP=Math.max(0,profit-salary-eni), corp=corpTax(ctP), distributable=Math.max(0,ctP-corp);\n var dividends = extract==='all' ? distributable : Math.min(num('dividends'), distributable);\n var retained = distributable - dividends;\n var itSal=incomeTax(salary), eeNI=class1(salary), divTax=dividendTax(dividends,salary);\n var take = salary - itSal - eeNI + dividends - divTax;\n return {profit:profit,salary:salary,salaryCapped:salaryCapped,eni:eni,eniGross:eniGross,corp:corp,distributable:distributable,dividends:dividends,retained:retained,itSal:itSal,eeNI:eeNI,divTax:divTax,take:take};\n }\n function computeSole(){ var p=num('profit'), it=incomeTax(p), ni=class4(p); return {profit:p,it:it,ni:ni,take:p-it-ni,retained:0}; }\n\n function pullProfit(){\n var found=false;\n try{ var d=JSON.parse(localStorage.getItem('bib_dashboard')); if(d&&d.foundations&&d.foundations.yourNumber){ document.getElementById('profit').value=Math.round(d.foundations.yourNumber*12); found=true; } }catch(e){}\n var el=document.getElementById('profitFrom');\n if(found){ el.innerHTML='Based on Your Number from your audit. Adjust it above if your profit is different.'; }\n else { el.innerHTML='Not done the audit yet? <a class=\"auditbtn\" href=\"quality-of-life-audit.html\">Do the quality of life audit<\/a> or just type your profit in above.'; }\n }\n pullProfit();\n\n function salaryWhy(salary){\n if(salary<=5000) return 'At \u00a35,000 or below there is no employer NI to pay. But this is under the \u00a36,708 lower earnings limit, so this year would not count towards your state pension.';\n if(salary<=6708) return 'This protects a state pension year, as it is at or above the \u00a36,708 lower earnings limit. A little employer NI is due on the part above \u00a35,000.';\n if(salary<=12570) return 'You are using your full tax-free personal allowance. Employer NI applies above \u00a35,000, and a single-director company does not qualify for the Employment Allowance, but the salary is tax-deductible for the company, so this is usually the most efficient overall.';\n return 'Above \u00a312,570 you start paying income tax and employee NI on your salary, which is usually less efficient than taking the same money as dividends.';\n }\n\n function render(){\n document.getElementById('salaryCard').style.display = structure==='ltd'?'block':'none';\n document.getElementById('divCard').style.display = structure==='ltd'?'block':'none';\n var rc=document.getElementById('receipt'); rc.innerHTML='';\n var take, retained=0, tax=0, profit=0;\n\n if(structure==='ltd'){\n var r=computeLtd(); take=r.take; retained=r.retained; tax=r.eni+r.corp+r.itSal+r.eeNI+r.divTax; profit=r.profit;\n document.getElementById('distributable').textContent=gbp(r.distributable);\n document.getElementById('retained').textContent=gbp(r.retained);\n document.getElementById('divField').style.display = extract==='some'?'flex':'none';\n document.querySelectorAll('#salaryChips button').forEach(function(b){ b.classList.toggle('on', +b.getAttribute('data-v')===num('salary')); });\n document.getElementById('salaryWhy').textContent=(r.salaryCapped?('Your company only has '+gbp(r.profit)+' of profit, so the salary is capped at '+gbp(r.salary)+' once employer\\u2019s NI is covered. '):'')+salaryWhy(num('salary'));\n var warn=document.getElementById('divWarn');\n if(extract==='some' && num('dividends')>r.distributable){ warn.style.display='block'; warn.textContent='You cannot take more in dividends than there is profit after tax. Taking more would count as a director\\u2019s loan you have to pay back. I have capped it at '+gbp(r.distributable)+'.'; }\n else warn.style.display='none';\n rc.innerHTML =\n row('Company profit', r.profit) +\n row('Your salary', -r.salary,'sub') +\n row(EA?'Employer NI (covered by Employment Allowance)':'Employer NI', -r.eni,'sub') +\n row('Corporation tax', -r.corp,'sub') +\n row('Available for dividends', r.distributable) +\n row('Dividends you take', -r.dividends,'sub') +\n row('Left in the company', r.retained) +\n divider() +\n row('Salary in your pocket', r.salary-r.itSal-r.eeNI) +\n row('Dividends in your pocket', r.dividends-r.divTax) +\n row('Your take-home', r.take, 'tot');\n } else {\n var s=computeSole(); take=s.take; retained=0; tax=s.it+s.ni; profit=s.profit;\n rc.innerHTML =\n row('Your profit', s.profit) +\n row('Income tax', -s.it,'sub') +\n row('Class 4 National Insurance', -s.ni,'sub') +\n row('Your take-home', s.take,'tot');\n }\n renderWhere(take, tax, retained, profit);\n }\n function row(label,val,cls){ var c=cls==='tot'?' tot':''; return '<div class=\"r'+c+'\"><span>'+label+'<\/span><b>'+(val<0?'-'+gbp(-val):gbp(val))+'<\/b><\/div>'; }\n function divider(){ return ''; }\n function renderWhere(you, tax, company, profit){\n document.getElementById('whereTitle').textContent='Where your '+gbp(profit)+' of profit goes';\n var total=Math.max(profit,1);\n var segs=[{k:'you',label:'To you',v:Math.max(0,you)},{k:'hmrc',label:'To HMRC',v:Math.max(0,tax)}];\n if(company>0.5) segs.push({k:'co',label:'Stays in the company',v:company});\n var bar=document.getElementById('moneybar'); bar.innerHTML='';\n segs.forEach(function(s){ bar.innerHTML+='<div class=\"seg '+s.k+'\" style=\"width:'+(s.v\/total*100)+'%\"><\/div>'; });\n var subs={you:'a year, after tax', hmrc:'a year, all your taxes', co:'a year, your buffer and to reinvest'};\n var b=document.getElementById('buckets'); b.innerHTML='';\n segs.forEach(function(s){\n var pct=Math.round(s.v\/total*100);\n var extra = s.k==='you' ? (' \\u00B7 '+gbp(you\/12)+' a month') : '';\n b.innerHTML+='<div class=\"bucket '+s.k+'\"><span class=\"dot\"><\/span><div class=\"cap\">'+s.label+'<\/div><div class=\"big\">'+gbp(s.v)+'<\/div><div class=\"pct\">'+pct+'% of profit<\/div><div class=\"sub\">'+subs[s.k]+extra+'<\/div><\/div>';\n });\n }\n\n document.querySelectorAll('#structure button').forEach(function(b){\n b.addEventListener('click',function(){ document.querySelectorAll('#structure button').forEach(function(x){x.classList.remove('on');}); b.classList.add('on'); structure=b.getAttribute('data-s'); render(); });\n });\n document.querySelectorAll('#salaryChips button').forEach(function(b){\n b.addEventListener('click',function(){ document.getElementById('salary').value=b.getAttribute('data-v'); render(); });\n });\n document.querySelectorAll('#extract button').forEach(function(b){\n b.addEventListener('click',function(){ document.querySelectorAll('#extract button').forEach(function(x){x.classList.remove('on');}); b.classList.add('on'); extract=b.getAttribute('data-e');\n if(extract==='some'){ var r=computeLtd(); if(num('dividends')===0) document.getElementById('dividends').value=Math.round(r.distributable); }\n render(); });\n });\n document.getElementById('eaChk').addEventListener('change',function(){ EA=this.checked; render(); });\n document.querySelectorAll('input').forEach(function(i){ i.addEventListener('input',render); });\n\n document.getElementById('detailToggle').addEventListener('click',function(){\n var r=document.getElementById('receipt'), c=document.getElementById('reccap'), open=r.style.display!=='none';\n r.style.display=open?'none':'block'; c.style.display=open?'none':'block';\n this.textContent=open?'See every step of the maths':'Hide the detail';\n });\n\n document.getElementById('sendDash').addEventListener('click',function(){\n var take = structure==='ltd'?computeLtd().take:computeSole().take, ok=false;\n try{ var d=JSON.parse(localStorage.getItem('bib_dashboard'))||{foundations:{},week:{},history:[]}; if(!d.foundations)d.foundations={}; d.foundations.payTarget=Math.round(take\/12); localStorage.setItem('bib_dashboard',JSON.stringify(d)); ok=true; }catch(e){ok=false;}\n var done=document.getElementById('dashDone'); done.style.display='inline';\n done.textContent = ok?('\\u2713 Added '+gbp(take\/12)+' as your monthly pay'):('Saved for this session. It will sync once hosted.');\n });\n\n render();\n<\/script>\n\n\n<\/body><\/html>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>Pay yourself \u00b7 Build It Backwards Build it backwards \u00b7 toolkit Pay yourself The two ways money leaves a limited company, salary and dividends, made clear. Play with it to see what lands in your pocket and what stays in the business. Heads up: every figure here is a year at a time, unless it […]<\/p>\n","protected":false},"author":2,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_acf_changed":false,"_eb_attr":"","_templately_pack_id":"","_templately_imported_at":"","_templately_source":"","_templately_import_session_id":"","footnotes":""},"class_list":["post-3172","page","type-page","status-publish","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/comments?post=3172"}],"version-history":[{"count":11,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172\/revisions"}],"predecessor-version":[{"id":3410,"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/pages\/3172\/revisions\/3410"}],"wp:attachment":[{"href":"https:\/\/www.bare-digital.com\/ashe\/wp-json\/wp\/v2\/media?parent=3172"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}