Dividend vs salary calculator
The classic director question: pay it all as salary, or a small salary plus dividends? Compare both routes at your profit level.
Why directors split salary and dividends
Salary is deductible for the company but attracts income tax and NI. Dividends are paid from profits after corporation tax, but carry no NI and lower personal rates (8.75% / 33.75% / 39.35%). The classic pattern — salary to the £12,570 allowance, dividends above it — usually wins, but by how much depends on your profit level and the corporation tax band you're in.
What this leaves out
Employer NI and the employment allowance, pension contributions (often the single biggest lever), other income, and Scottish rates. The calculator shows the shape of the decision; the exact optimum for your company is what a remuneration review is for — ours is a £249 fixed fee.