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Salary vs Dividend Calculator

Enter your company's profit and the salary you'd like to pay yourself, and this calculator shows the full breakdown — Corporation Tax, employer and employee National Insurance, Income Tax and dividend tax — plus how much you'd actually take home overall.

There's no single "correct" split between salary and dividends — it depends on your Employment Allowance eligibility, whether you have other income, and how much you want to draw out this year versus leave in the company. Use the sliders to compare a few different salary levels and see how the total changes, then treat the result as a starting point for a proper conversation with a professional, not a final answer.

Your company’s trading profit for the year, before your salary or employer National Insurance are deducted.

£

The rest of the profit, after Corporation Tax, is what’s available to pay out as a dividend.

£
Rates & assumptions used
  • Employer National Insurance: 15% above £5,000 salary
  • Employment Allowance, if eligible: up to £10,500 off the employer NI bill
  • Employee National Insurance: 8% between £12,570 and £50,270, 2% above
  • Income Tax on salary: Personal Allowance £12,570, then 20% / 40% / 45% bands, tapered above £100,000 total income
  • Corporation Tax: 19% up to £50,000 profit, marginal relief up to £250,000, then 25%
  • Dividend tax: first £500 tax-free, then 8.75% / 33.75% / 39.35% depending on your band
  • Assumes a single company with no associated companies, and 100% of after-tax profit paid out as dividend
  • Assumes England, Wales or Northern Ireland rates, no other income, and no pension contributions

Where the company profit goes

You keepCompany tax & NIYour tax & NI

Estimated result

£56,804

total estimated take-home, after all tax & National Insurance

Company side

Salary paid
£12,570
Employer National Insurance
£1,136
Corporation Tax
£13,818
Dividend paid
£52,476

Your side

Income Tax on salary
£0
Employee National Insurance
£0
Tax on dividend
£8,242
Total take-home
£56,804
Effective overall rate
29.0%

This is an estimate for planning purposes only, not a tax return or financial advice. It assumes you have no other income and that your company distributes all its after-tax profit as a dividend this year.

For the full picture, see our complete limited company tax guide, or head straight to Limited Company Accounts support.

How this calculator works

  • 1Enter your company's profit for the year, before your salary or employer National Insurance are deducted.
  • 2Enter (or slide to) the annual salary you'd pay yourself as a director.
  • 3Employer National Insurance is calculated on that salary, offset by Employment Allowance if you tell us your company qualifies.
  • 4Corporation Tax is calculated on what's left, using the small profits rate, marginal relief or main rate depending on the amount.
  • 5Whatever remains after Corporation Tax is treated as the dividend paid out, and your personal Income Tax, employee National Insurance and dividend tax are calculated on top of that.
  • 6Everything updates instantly as you adjust either figure — nothing is submitted or saved.

FAQs

Salary vs Dividend Calculator questions

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This calculator gives you an estimate. Register your enquiry and we'll aim to put you in touch with a professional as we onboard providers who can confirm the right salary and dividend split for your company.

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