Director Salary vs Dividend Calculator

Who it's for

Directors of single-person or small UK limited companies, contractors working through their own company, and anyone about to incorporate who wants to see what the salary-and-dividend split actually looks like before they speak to an accountant. Also useful for bookkeepers and accountants who want a quick client illustration.

Why it's different

Most online calculators give you one number for one salary and hide the working. This one shows five strategies at once, with every step visible, and re-runs the whole model across a range of profits so you can see where the best answer changes. It uses the 2025/26 and 2026/27 figures including the dividend rate rises from April 2026, corporation tax marginal relief between £50,000 and £250,000, employer NI at 15% above £5,000, the Employment Allowance where you are eligible, student loan repayments on dividends, and Scottish bands for salary if you are a Scottish taxpayer. Net take-home counts only the tax caused by company pay, so if you have a salary elsewhere or rental income the marginal rates are right. Every rate is on the Settings tab with its source, so you can update it yourself when the figures change.

What's inside

• Start Here: plain-English instructions, the five strategies explained, how the sums work, what is not modelled
• Dashboard: recommended strategy, net take-home, tax and NI saved versus all salary, effective overall rate, corporation tax, employer NI, salary and dividends, a five-strategy summary and a warnings block
• Settings: every 2025/26 and 2026/27 rate and threshold with its gov.uk source alongside, all editable: corporation tax small profits rate, main rate and marginal relief; employer NI rate, secondary threshold and Employment Allowance; employee NI thresholds and rates; lower earnings limit; personal allowance, bands and taper; the new dividend rates and allowance; student loan plans 1, 2, 4, 5 and Postgraduate; Scottish income tax bands
• Inputs: company profit, other personal income, employer pension contribution, Employment Allowance, student loan plan, desired total extraction
• Comparison: salary at the NI secondary threshold (£5,000), at the personal allowance (£12,570), at the lower earnings limit (£6,708), all salary, and a custom salary, side by side with grey workings showing every step
• Scenarios: profits from £20,000 to £200,000 in £10,000 steps, each re-run in full, with the best strategy named and the extra take-home against all salary
• Take-Home Ladder: for a chosen strategy, dividends climb in £5,000 steps with total income, allowance, tax, net take-home, the marginal rate on the next £1, the tax zone and whether the company can afford it; red where the marginal rate jumps