Salary vs dividend calculator for UK directors
Estimate how much you might take home from a UK limited company when you mix director salary and dividends. This page is designed for simple planning, not year-end accounting or payroll filing.
Company inputs
| Breakdown | Amount |
|---|---|
| Company profit input | £0 |
| Director salary | £0 |
| Employer NI | -£0 |
| Corporation Tax | -£0 |
| Post-tax dividends available | £0 |
| Income Tax + employee NI on salary | -£0 |
| Dividend tax | -£0 |
| Total tax paid | £0 |
How this calculator works
This page starts with company profit before director salary and company taxes. It then deducts the salary you enter and estimates Employer National Insurance. The remaining taxable profit is used to estimate Corporation Tax. What is left after company taxes is treated as distributable dividends for this simple planning example.
On the personal side, the calculator estimates salary tax first, then dividend tax. Dividends use any remaining Personal Allowance first, then the dividend allowance, then the 2026/27 dividend tax rates. The result is a planning estimate of what you might keep after both company and personal taxes.
Where this is useful
- Comparing a low-salary, high-dividend approach with a higher-salary approach.
- Getting a rough sense of your total tax burden before you talk to your accountant.
- Understanding how Employer NI and Corporation Tax affect what is actually available to distribute.
What salary is often used as a starting point?
Many directors start by testing £12,570 because it matches the standard Personal Allowance for 2026/27. That can make sense in simple cases, but it is not automatically the best answer for every company or every person.
Does this use the exact Corporation Tax marginal relief calculation?
It uses the standard thresholds and relief shape for a simple company with no associated companies and no franked investment income. Real accounts can still differ because the legal computation depends on your accounting period, associated companies, augmented profits and other adjustments.
Why is this page better for planning than for filing?
Because payroll software, director NIC rules, accounting adjustments and your wider personal tax position can all change the final answer. This tool is for comparison and decision support, not filing or advice.