Understand Your Take-Home Pay

Working out how much of your business income you can actually take home isn’t as simple as looking at what’s in the bank. Turnover isn’t profit, and profit isn’t all available to draw - a share always belongs to HMRC in the form of Corporation Tax, PAYE, and your own personal Income Tax.

Many directors are caught out at year end by how much needs to be set aside, having spent or drawn more than they realised was actually theirs to take.

Our Tax Set-Aside Calculator helps you plan ahead. Enter your monthly turnover and expenses, your director’s salary, and details of any employees, and it will estimate your Corporation Tax and PAYE liabilities, along with an optional estimate of your personal tax on salary and dividends drawn.

This gives you a clearer picture of what’s genuinely available to take home each month, rather than being caught out later with an unexpected tax bill.

Update it regularly throughout your accounting year as your figures change, so you always know roughly how much to keep set aside and how much is genuinely safe to draw.