Calibra Accountancy

Free calculator

Director salary
and dividend calculator

Compare different ways of paying yourself from your limited company, side by side.

Where are you resident for Income Tax purposes?
Do you have income outside this company?
£

Profit for the year before your salary and Corporation Tax.

£

Salary plus dividends you want to take. Leave blank to take all available profit.

Can your company claim Employment Allowance?

Employment Allowance can reduce employer NI by up to £10,500 a year for eligible employers.

Here's how different ways of taking £50,069 from your company compare.

£

Dividends only

No salary. Everything is paid as dividends.

Personal take home

£44,111

Gross salary
£0
Employer NI
£0
Employee NI
£0
Income Tax on salary
£0
Corporation Tax
£12,150
Available dividend
£47,850
Dividend taken
£47,850
Dividend tax
£3,739
Company cost of salary
£0
Cash retained in company
£0
Combined estimated taxes
£15,889

Salary of £5,000

Salary at the employer NI threshold, so no employer NI.

Personal take home

£45,294

Gross salary
£5,000
Employer NI
£0
Employee NI
£0
Income Tax on salary
£0
Corporation Tax
£10,825
Available dividend
£44,175
Dividend taken
£44,175
Dividend tax
£3,881
Company cost of salary
£5,000
Cash retained in company
£0
Combined estimated taxes
£14,706

Salary of £12,570

Salary uses the Personal Allowance, so no employee NI or Income Tax on it.

Personal take home

£46,091

Gross salary
£12,570
Employer NI
£1,136
Employee NI
£0
Income Tax on salary
£0
Corporation Tax
£8,796
Available dividend
£37,499
Dividend taken
£37,499
Dividend tax
£3,977
Company cost of salary
£13,706
Cash retained in company
£0
Combined estimated taxes
£13,909

Why the scenarios differ

  • Salary reduces the company's Corporation Tax because it's a business expense, but it can attract employer and employee NI and Income Tax.
  • Dividends are paid from profit after Corporation Tax. They are not a business expense, so they don't reduce Corporation Tax.
  • Dividends are taxed at lower rates than salary, after a £500 dividend allowance, and sit on top of your other income in the tax bands.
  • Above £100,000 of income your Personal Allowance is reduced by £1 for every £2, which can increase tax sharply.

The most tax efficient result isn't necessarily the right option.

Salary level affects your National Insurance record and future State Pension, mortgage and lending applications, and how much profit the company has left. Other personal income, pension contributions, other shareholders and plans for the business all matter too.

Use these figures as a starting point for a conversation, not a decision.

Tax year 2026/27. Corporation Tax uses the small profits rate, main rate and Marginal Relief, with no associated companies. Employee NI is worked out on an annual basis as for directors. Pension contributions, student loans and Gift Aid are not included. Figures last reviewed 23 October 2026.

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