Salary vs Dividend Calculator
Find your optimal salary and dividend split to legally minimise tax as a UK solo director. Updated for 2025-26 including April 2025 employer NI changes.
Your figures
Revenue minus business expenses, before director salary
Capped at post-corporation-tax retained profit
Quick salary scenarios
Take-home pay
£48,664
Effective tax rate
23.6%
Saving £2,845 vs pure salary approach
Tax breakdown
Corporation tax detail
How the calculation works
- 1
Salary deducted first
Director salary and employer NI are deducted from company profit before calculating corporation tax. Both are allowable expenses.
- 2
Corporation tax on remaining profit
Profits up to £50k taxed at 19%. £50k–£250k uses marginal relief. Above £250k at 25%. Dividends are paid from post-tax profit.
- 3
Personal income tax on salary
Salary above your personal allowance (£12,570) is taxed at 20%, 40%, or 45%. Your personal allowance tapers above £100,000.
- 4
Dividend tax on top
First £500 is tax-free. Dividends then fill your remaining basic rate band at 8.75%, then higher rate at 33.75%.
HMRC sources
Disclaimer: This calculator is for illustrative purposes only and does not constitute tax advice. Figures are based on standard HMRC rates for 2026-27. Your actual liability may differ depending on your tax code, benefits in kind, pension arrangements, and other factors. Consult a qualified tax adviser before making remuneration decisions.