Free Tool

Dividend vs Salary Calculator

Compare the tax efficiency of taking salary versus dividends as a company director. Find your optimal remuneration split for 2025/26.

Your company’s profit before corporation tax and your salary

Tip: £12,570 is the optimal salary for most directors (personal allowance level)

Total Take-Home Pay

£55,430

£4,619/month

Savings vs All Salary

£4,099

You save per year

All-Salary Take-Home

£51,331

For comparison

Company Level

Salary Cost to Company£13,049
↳ Employer NI£479
Corporation Tax£16,738
Available for Dividends£50,213

Personal Level

Net Salary£12,570
↳ Income Tax on Salary-£0
↳ Employee NI-£0
Net Dividends£42,860
↳ Dividend Tax-£7,353
Total Take-Home£55,430

This calculator provides estimates based on 2025/26 rates. It assumes no other income, standard tax codes, and simplified corporation tax treatment. For accurate, personalised advice, please consult our tax advisors.

Optimise Your Remuneration Strategy

The optimal salary/dividend split depends on many factors including your company profits, other income, pension contributions, and personal circumstances. Our tax advisors can create a bespoke strategy tailored to your situation.

Get Personalised Advice