Salary vs Dividend Calculator

For limited company directors: compare the total tax cost of paying yourself via salary (PAYE + NI) versus dividends (corporation tax + dividend tax). For personalised advice, speak to our advisers.

Income Details

Enter your company profit and desired income

Company

Company Profit Before Your Pay

Profit available to pay yourself (before salary/dividends)

Target Personal Income (gross)

How much you want to take home before personal tax

Recommended Strategy

Salary + Dividends

optimal mix shown below

£0

All-Salary Net

£0

All-Dividend Net

£0

Optimal Mix Net

Option A: All Salary

Option B: All Dividends

Option C: Optimal Mix (Salary £12,570 + Dividends)

The optimal strategy for most director-shareholders is to take a salary of £12,570 (personal allowance) and the rest as dividends. This minimises NI while utilising the personal allowance and dividend allowance (£500). Individual circumstances may vary — always seek professional advice.