Compare salary vs dividend extraction for UK company directors by modelling company profits → Corporation Tax → dividends available, then personal tax on salary and dividends. This…
Annual take‑home
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Corporation Tax
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Dividend tax
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Employer NI on salary
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Profit before CT
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Post‑tax profit available
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Dividends paid (capped)
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Retained profit
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Salary net
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Dividends net
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About this calculator
Compare salary vs dividend extraction for UK company directors by modelling company profits → Corporation Tax → dividends available, then personal tax on salary and dividends. This helps you estimate combined tax outcomes and approximate net income under different mixes, using a deterministic band‑by‑band approach.
How the calculation works
We estimate Corporation Tax on profits after salary, then treat the remaining distributable amount as dividends. On the personal side, salary and dividends are taxed through the relevant bands (with Personal Allowance taper where applicable) to produce an estimated net outcome.
FAQ
Is there one best split?
No. The best mix depends on profits, allowances, and other income.
Does this include employer NI?
Director setups vary; check what this page models in the inputs and notes.
Does it include pension contributions?
Not by default. Pension planning can materially change outcomes.
Is it official advice?
No—use this as planning guidance and validate with an accountant for complex cases.
Understanding your director take-home (salary vs dividend) result
This tool models a limited company director scenario: company profit → salary costs + employer NI → corporation tax → dividends → personal tax. It’s a structured estimate for comparing mixes of salary and dividends.
Company profit is reduced by salary and employer NI before corporation tax.
Post-corporation-tax profit funds dividends (subject to availability).
Personal tax is calculated on salary + dividends with band stacking.
Next steps
Use this to compare scenarios quickly, then sanity-check with your accountant for edge cases.
Is this calculator “exact”? It’s deterministic using stated assumptions, but it won’t cover every edge case (e.g., special reliefs). Use it for planning and compare with official guidance for edge cases.
Why do results change sharply at thresholds? Most UK taxes/charges are banded. Crossing a band can change the marginal rate applied to the next slice, which can look like a step-change in totals.