Director Salary vs Dividend Calculator

Optimise your take-home pay as a UK limited company director

2026 / 27 Tax Year

Your Details

Company net profit before director's pay

Profit before deducting your salary/employer NI

Director's other personal income

Employment income, pensions, rental etc.

Personal allowance already used

How much of your £12,570 PA is used by other income

Number of equal shareholders

Dividends are split equally among shareholders

This tool provides illustrative estimates only and does not constitute tax, legal or financial advice. Tax rules are complex and personal circumstances vary. Always consult a qualified accountant before making decisions.

Scenario Comparison

	Optimal	All Salary	50 / 50	All Dividends

What This Means

Assumptions & notes

England/Wales/NI income tax rates. Scottish rates differ.
Employment Allowance is not claimed (director is sole employee or company is excluded).
The "Optimal" scenario sets salary at the employee NI Primary Threshold (£12,570) to avoid employee NI while still qualifying for state pension credits, then pays the remainder as dividends.
Corporation tax thresholds are divided by total number of associated companies (assumed 1 here — the company itself).
Dividend allowance (£500) is applied per shareholder.
No student loan, pension contributions or other deductions are modelled.
Rates: Personal allowance £12,570 (frozen); basic rate 20% to £50,270; higher 40% to £125,140; additional 45% above. Dividend tax 10.75% / 35.75% / 39.35%. Employee NI 8% / 2%. Employer NI 15% above £5,000. Corporation tax 19% small profits / 25% main / marginal relief 3/200.