Free Tool • 2026/27 Rates
Salary vs Dividend Calculator
Compare how much you keep when paying yourself via salary, dividends, or a combination as a limited company director.
How to Use the Salary and Dividend Comparison
Director pay planning depends on company profit, other income, pension goals, Employment Allowance eligibility, and how much cash the company needs to retain.
Good for
- Comparing all-salary extraction with salary plus dividends
- Understanding Corporation Tax before dividends are paid
- Seeing how other personal income can affect dividend tax bands
Watch for
- Dividends can only be paid from distributable profits
- Employment Allowance, director payroll rules, and pension contributions can change the optimal salary
- Select Scotland if the director is a Scottish taxpayer for salary income tax
- The calculator does not replace company accounts or board dividend paperwork
Speak to an accountant when
- You have multiple shareholders or different share classes
- Your company profit is near Corporation Tax marginal relief bands
- You want to combine salary, dividends, pension contributions, and benefits tax-efficiently
Company Details
£
£
Common: £12,570 (NI threshold)
£
Quick Salary Presets
Salary + Dividend
£46,091
25.5% effective rate
All as Salary
£37,107
38.2% effective rate
You save £8,984 per year with the salary + dividend strategy.
Tax Flow Breakdown
Company Gross Profit£60,000
Director Salary−£12,570
Employer's NI−£1,136
Taxable Company Profit£46,295
Corporation Tax−£8,796
Available for Dividends£37,499
Your Personal Tax
Income Tax on Salary−£0
Employee NI on Salary−£0
Dividend Tax−£3,977
Your Take-Home Pay£46,091
Get Personalised Director Tax Advice
The optimal salary/dividend split depends on your full circumstances. Speak with a specialist.
Find a Contractor SpecialistUses 2026/27 UK rates and thresholds reviewed on 10 May 2026. Results are estimates only.
GOV.UK source