Salary vs dividend calculator 2026/27
For limited company directors. Put in the company's profit and your salary, and see the corporation tax, National Insurance and dividend tax on it, what reaches your pocket, and the salary that leaves you the most.
Scottish income tax applies to salary. Dividends are taxed at UK rates everywhere.
Sales minus business costs for the company's year, before paying yourself a salary or any employer NI on it.
For the year. The comparison below tries every salary and shows £5,000, £6,708 and £12,570 too.
The total for the tax year. Anything you don't take stays in the company.
Usually not if you're the only director and nobody else on the payroll earns over £5,000.
Pension, student loan, State Pension and other income
A salary from another job, a pension or rental profit, before tax. It moves your dividends up the bands.
Paid by the company into your pension for the year. It comes off the company's profit before corporation tax.
The best-salary search below respects this.
Your estimate
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Scenarios side by side
Compare salaries
| Salary | In your pocket | A month | Tax and NI | Against the best |
|---|
Band by band
| What | On | Amount |
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Rates checked against GOV.UK on 7 October 2026. Sources
How the estimate works
The company pays your salary, any employer National Insurance on it and any employer pension contribution, and all three come off its profit before corporation tax. What's left after corporation tax can be paid to you as dividends. On your side, the salary uses your personal allowance first, then dividends are added on top: the first £500 is taxed at 0% and the rest at the dividend rate for the band it lands in. The calculator adds up every tax and NI bill, the company's and yours, shows what reaches your pocket, and tries every salary in £100 steps to find the one that leaves the most.
| What | Rate |
|---|---|
| Personal allowance | £12,570, reduced by £1 for every £2 of income over £100,000 |
| Income tax on salary | 20% on the first £37,700 of taxable income, 40% to £125,140, 45% above (Scotland: 19% to 48% in six bands) |
| Dividend allowance | £500 at 0% (it still uses up your tax band) |
| Dividend tax | 10.75% basic rate, 35.75% higher rate, 39.35% additional rate, UK-wide |
| Employee National Insurance | 8% on salary £12,570 to £50,270, 2% above |
| Employer National Insurance | 15% on salary over £5,000 (the secondary threshold) |
| Lower earnings limit | £6,708, the salary that counts towards your State Pension |
| Employment Allowance | Up to £10,500 off employer NI, if the company qualifies |
| Corporation tax | 19% up to £50,000 profit, 25% over £250,000, marginal relief between (standard fraction 3/200) |
| Student loans | 9% over £26,900 (Plan 1), £29,385 (Plan 2), £33,795 (Plan 4) or £25,000 (Plan 5); Postgraduate Loan 6% over £21,000; dividends count once over £2,000 |
Directors' National Insurance is worked out on an annual basis, so the yearly thresholds are used. The estimate assumes one director, a 12-month accounting period and no associated companies. It leaves out the High Income Child Benefit Charge, benefits in kind and your director's loan account, so your real figures can be different.
Rates checked against GOV.UK on 7 October 2026. They apply to the 2026/27 tax year (6 April 2026 to 5 April 2027).
What salary do limited company directors usually take in 2026/27?
There's no single right answer, but three levels come up most. £5,000 is the secondary threshold, below which the company pays no employer National Insurance. £6,708 is the lower earnings limit, which gives you a qualifying year for the State Pension without paying any NI. £12,570 is the personal allowance and the employee NI threshold, so there's no income tax or employee NI on it, but the company pays 15% employer NI on the part over £5,000 unless it can claim the Employment Allowance. The calculator tries every salary in £100 steps on your figures and shows which leaves the most in your pocket.
How are dividends taxed in 2026/27?
The first £500 of dividends is covered by the dividend allowance. Above that, dividends are taxed at 10.75% in the basic rate band, 35.75% in the higher rate band and 39.35% in the additional rate band. The basic and higher rates went up by 2 percentage points from 6 April 2026 (they were 8.75% and 33.75%); the calculator shows what that rise costs you.
Is the £500 dividend allowance extra tax-free income?
Not quite. Dividends covered by the allowance are taxed at 0%, but they still count as income and use up your basic rate band. Dividends are added on top of your salary and other income to work out which band they fall in.
Are dividends taxed differently in Scotland?
No. Dividends are taxed at the UK rates and bands everywhere. Scottish income tax applies to the salary, so choose Scotland if you pay it.
Can my company claim the Employment Allowance?
The Employment Allowance cuts the company's employer National Insurance bill by up to £10,500 a year. If the company has only one director, that director must not be the only employee paying (or due) employer NI, so a one-person company with no other staff paid over £5,000 usually can't claim it.
Should the company pay into my pension instead?
Employer pension contributions come off the company's profit before corporation tax, with no National Insurance and no income tax for you, within your annual allowance. Put a figure in and the calculator shows the effect.
How much corporation tax will my company pay?
For the financial year from 1 April 2026, 19% on profits up to £50,000 and 25% on profits over £250,000. In between, marginal relief applies, which works out at an effective 26.5% on the slice between £50,000 and £250,000. The limits are divided between associated companies and cut for accounting periods shorter than 12 months.
Do I pay National Insurance on dividends?
No. Dividends carry income tax only. National Insurance is paid on salary: employee NI by you and employer NI by the company.
Does this calculator run payroll or file anything?
No. It's an estimate for planning. Payroll, the company's corporation tax return and your own Self Assessment return all still need doing in the usual way.
Keep the company's numbers straight
The SortedDesk Limited Company Dividend Spreadsheet keeps the year in one place: company profit, your salary, a dividend log with vouchers and board minutes, how far into each tax band you are, the director's loan account and the profit kept in the company. Excel, Numbers and Google Sheets.
An estimate to help you plan, not financial or tax advice. It doesn't file or send anything to HMRC, and it can't know everything about your situation. Check your own position on GOV.UK or with an accountant.
Dividends are taxed at the same UK rates and bands in Scotland; choose Scotland for Scottish income tax on the salary. National Insurance and corporation tax are UK-wide.