Tax calculator

Salary vs Dividends Calculator

Compare take-home pay for a limited company director across salary and dividend splits.

Company profit before your payProfit available to pay you, before salary and dividends£Director's annual salaryCommon choice: £12,570, the NI threshold — no employee NI, still qualifies for state pension£

£57,229

Your take-home

£22,771

Tax & NI paid overall

28.5%

Effective rate

Director salary	£12,570
Employer National Insurance15% above £9,100/yr	−£521
Corporation TaxOn profit after salary — 19–25%	−£13,981
Available for dividends	£52,928
Employee National InsuranceOn salary only	−£0
Income Tax on salary	−£0
Dividend Tax£500 allowance, then 8.75% / 33.75% / 39.35%	−£8,270
Your take-home	£57,229

2026/27 rates. Shows one salary/dividend split at a time so you can compare scenarios — try £12,570 (the NI threshold) against a higher salary to see the trade-off between employer NI and personal NI/tax. This is a simplified model: it ignores the Employment Allowance, other reliefs, and your personal circumstances. An accountant tailors the actual optimal split to your situation. Guidance only — not tax advice.

Figures use published 2026/27 UK tax rates and are simplified estimates for guidance only — not tax, accountancy, or financial advice. Your actual liability depends on your full circumstances; confirm withGOV.UK or a qualified accountant before acting.