Dividend vs Salary Calculator
Compare extracting company profit as salary or dividends
See which leaves you with more for 2026/27. This compares 100% salary versus 100% dividends — not an optimal mix.
Compares taking the profit entirely as salary versus entirely as dividends. It does not calculate the optimal salary/dividend mix.
Total Corporation Tax taxable profit for the accounting period, before this salary or dividend extraction.
Try a profit:
Salary already paid by this company only — not other jobs or personal income. Default £0.
Many single-director companies cannot claim. Yes means the company is eligible and the full £10,500 remains available against this salary.
How many other associated companies? Enter 0 if this is your only company. Affects Corporation Tax limits on the dividend route.
Which leaves you with more?
Like-for-like comparison of 100% salary versus 100% dividends from the same company taxable profit. England / Northern Ireland Income Tax, full-year Category A director NI. Not an optimal mix calculator.
Calculation breakdown
Salary route
Dividend route
Key assumptions
£5,000
Employer NI secondary threshold
15%
Employer NI rate
£10,500
Employment Allowance (if Yes)
2026/27
Tax year modelled
100%
Each route uses all profit
EN / NI
Income Tax model
Limitations
- No student loans, pension contributions or taxable benefits.
- No rental, pension, savings or other-employment income; existing dividends not modelled.
- Employment Allowance Yes assumes the full £10,500 remains available.
- Many sole-director / sole-employee companies cannot claim Employment Allowance.
About the Dividend vs Salary Calculator
Use this Dividend vs Salary Calculator UK 2026/27 to compare extracting the same limited company taxable profit entirely as director salary versus entirely as a dividend after Corporation Tax.
The salary route treats the profit as the company cost of remuneration (gross salary plus employer National Insurance, after any Employment Allowance). The dividend route applies Corporation Tax to the profit, then personal dividend tax on what remains. The result shows which route leaves you with more cash — not an optimised mix of both.
Official references include employer rates and thresholds 2026 to 2027, Employment Allowance, National Insurance for company directors, and Corporation Tax rates.
This tool is aimed at owner-managed UK limited company directors who want a clear like-for-like comparison before speaking to an accountant. It assumes a full tax year, Category A National Insurance, and England / Northern Ireland Income Tax rates.