“How much turnover does my business actually need to make… to pay me what I want… after all taxes?”
If you run a UK limited company and pay yourself a combination of salary and dividends, you might be wondering:
This is a deceptively complicated question. Why? Because income tax, dividend tax, corporation tax and personal allowance tapering all interact in messy ways. The wrong combination of income can trigger extra tax without giving you more in your pocket.
But what if you had a simple calculator that worked it out for you?
That’s exactly what I’ve created: a Turnover Target Calculator for UK Ltd Company Directors.
What the Calculator Does
This tool shows you the turnover required to achieve a specific monthly net income, after all taxes have been deducted.
You can enter:
- Your desired net monthly income
- Your business’s annual running costs
- Your average gross profit margin
The calculator then shows:
- The gross dividend required to reach your net income target
- Tax due on your salary and dividends
- Corporation tax
- Total pre-tax profit required
- The turnover you need to make it all happen
Tax Efficiency Built In
It also flags when you hit the messy part of the tax system:
- Personal allowance tapering (starts above £100,000 income)
- The “tax trap” zone where earning more = disproportionately higher tax
To make this easier to compare, the calculator uses a benchmark row set at a net income of £99,999.96. This helps you see exactly how much extra tax you’d pay if you go over it.
Why This Matters
Most small business owners overestimate how much income they can draw and underestimate how much profit they need to generate to get it. Worse, they hit tax traps without realising.
This calculator makes it easy to:
- Set realistic income goals
- Avoid the tax cliffs
- Understand the true cost of drawing more
- Forecast more accurately
Ready to Use It to calculate your Business Turnover??
The Turnover Calculator is formatted for ease of use, fully protected so you can’t break it, and designed to save you time, stress, and costly mistakes.
For a limited time, the Turnover Calculator will be available free of charge whilst testing is completed. After that, it will be available to purchase online via secure link.
Would you like to start planning smarter with free access today? Get in touch to request your free copy.
Need help with your limited company finances? I’m an accountant who specialises in helping business owners take control of their numbers and their income. Drop me a message if you’d like personalised support.