Payslips for Company Directors
Make payslips for the salary a limited company pays its director, with Income Tax, National Insurance and any pension worked out on 2026/27 rates. The generator below starts with the common £12,570 director salary, paid monthly.
PayStub Guru is NOT a bank, employer, government agency, or financial institution. We provide payslip generation tools for legitimate record-keeping purposes only. Generated documents are not official employer records and must not be used for fraudulent purposes. Read Legal FAQ
Payslips for a director's salary
A director is an office holder, and their salary goes through PAYE like anyone else's: the company runs payroll, reports each payment to HMRC, and gives a payslip. The payslip records the salary that was actually paid. Dividends aren't salary and don't go on it.
Made for one-person limited companies, small family companies and the accountants and bookkeepers who prepare their payslips.
Payslip Information
Tax rates last updated 22 October 2026. Sources: HMRC and Scottish Government.
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Why so many directors earn £12,570
A salary of £12,570 a year sits exactly at the personal allowance and the National Insurance primary threshold for 2026/27. On it, the director pays no Income Tax and no employee NI, and because it is above the £6,708 lower earnings limit the year still counts towards their State Pension.
The company does pay employer NI: 15% on salary above the £5,000 secondary threshold, which is £1,135.50 a year on £12,570. A company whose only paid employee is its sole director can't claim the Employment Allowance to cover it. The salary and the employer NI are business costs for corporation tax.
Whether £12,570, a lower salary or more works out best depends on the company's profits, other income and corporation tax rate. That is a question for the company's accountant; the generator just records what was paid.
How director National Insurance is different
Employees pay NI on each pay period by itself. Directors pay it on their earnings for the whole tax year (an annual earnings period), so a director's NI isn't settled until the year's pay is known. Payroll software uses one of two methods:
- Standard annual earnings period method: each payday, NI is worked out on total pay so far this tax year, less the NI already paid. Common for directors paid irregularly.
- Alternative method: NI is worked out on each period's pay, as for an employee, then checked against the annual figure at the year's last payday and topped up if needed. Common for directors paid the same each month.
| Who pays | Rate | On yearly salary |
|---|---|---|
| Director (employee NI) | 8% | £12,570 to £50,270 |
| Director (employee NI) | 2% | Above £50,270 |
| Company (employer NI) | 15% | Above £5,000 |
The generator works NI out on each period, as the alternative method does. For a salary paid in equal monthly amounts the year's total comes out the same. If the director takes an irregular salary or a bonus, payroll on the standard method will show different NI payday by payday: type over the NI line to match the payroll.
Salary on the payslip, dividends off it
- Salary is pay for the director's work. It goes through payroll, is reported to HMRC under RTI, and goes on the payslip with its tax and NI.
- Dividends are paid to shareholders out of profits after corporation tax. They don't go through PAYE and aren't on a payslip; each one is recorded with a board minute and a dividend voucher.
- For 2026/27 the first £500 of dividends is tax-free. Above that, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band, through Self Assessment.
Director payslips and mortgages
A director's payslips are a true record of salary, and lenders may ask for them. Lenders usually want more from limited company directors, such as SA302 tax calculations or company accounts, because a £12,570 salary leaves out the dividends and profits a director lives on.
A payslip must show only salary that was actually paid and reported to HMRC. Making a payslip for pay that wasn't paid, or adding dividends to it as salary, to borrow more is mortgage fraud.
Sample director payslips (2026/27, paid monthly)
£12,570 a year
£12,570 a year paid monthly, tax code 1257L, no pension
| Gross pay | £1,047.50 |
| Income Tax (1257L) | −£0.00 |
| National Insurance | −£0.00 |
| Net pay | £1,047.50 |
Nothing is deducted: £1,047.50 a month is just under the £1,048 monthly allowance and NI threshold. The company also pays about £94.58 a month (£1,135.50 a year) of employer NI, which isn't on the director's payslip.
£18,000 a year
£18,000 a year paid monthly, tax code 1257L, no pension
| Gross pay | £1,500.00 |
| Income Tax (1257L) | −£90.35 |
| National Insurance | −£36.16 |
| Net pay | £1,373.49 |
Income Tax at 20% and NI at 8% on the pay above £12,570 a year, worked out per month as the alternative method does.
£12,570 with a K code
£12,570 a year paid monthly, tax code K475, no pension
| Gross pay | £1,047.50 |
| Income Tax (K475) | −£288.82 |
| National Insurance | −£0.00 |
| Net pay | £758.68 |
A K code adds untaxed income, such as a company car benefit, to taxable pay. Here £4,759 is added, so the whole salary plus that amount is taxed at 20%.
Worked out by this generator on 2026/27 rates, category A National Insurance, for a pay date in October 2026. Payroll software using cumulative PAYE can differ by pennies; any line can be typed over in the form.
What the generator doesn't do
- Employer NI is a cost to the company and isn't shown on the payslip, so the generator doesn't work it out.
- Director NI is worked out per period (the alternative method). For a salary paid unevenly, type over the NI line with the figure from payroll.
- No dividend vouchers, P60s or RTI submissions: the generator makes the payslip only, and the salary still has to be reported to HMRC each payday through payroll software.
- Whether automatic enrolment applies to a director depends on whether they have an employment contract. Set the pension to 0% if no workplace pension is paid through payroll.
Payslips for Company Directors: FAQ
Do company directors get payslips?
A director paid a salary through payroll should get a payslip like any other employee, and directors with an employment or service contract are entitled to one under the Employment Rights Act. It also keeps the company's payroll records straight.
Does a director pay tax or NI on a £12,570 salary?
No. In 2026/27, £12,570 is both the personal allowance and the NI primary threshold, so a director on tax code 1257L pays no Income Tax and no employee NI on it. The company pays employer NI of £1,135.50 a year on the part above £5,000.
Can a sole director claim the Employment Allowance?
Not if the director is the only employee paid above the £5,000 secondary threshold. GOV.UK says a company with one director can claim only if the director isn't the only employee liable for employer NI.
Do dividends go on a director's payslip?
No. Dividends are paid to shareholders, not through payroll, so they aren't on a payslip. Record each one with a dividend voucher, and the director reports them through Self Assessment.
Why is a director's NI different from an employee's?
Directors pay NI on their earnings for the whole tax year (an annual earnings period) rather than per pay period. That stops a director avoiding NI by taking one large payment in a single month. For equal monthly pay the annual total is the same either way.
Can I make a director payslip for a mortgage application?
Only for salary that was actually paid and reported to HMRC. Lenders usually also ask directors for SA302s or company accounts. A payslip showing pay that wasn't paid is fraud.
Important Legal Information
Please read these carefully before using our service. Misuse of generated documents is illegal and has serious consequences.
We Are NOT a Bank, Employer, or Government Agency
PayStub Guru is an independent software service. We are not affiliated with any: banks, employers, government agencies, tax authorities (IRS, HMRC, CRA, ATO, LHDN), financial institutions, or payroll companies. We do not verify employment or income. We provide software tools only.
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