Salary vs Dividend Calculator
Compare a simplified salary-and-dividend extraction scenario for a limited company.
Illustrate a simplified salary-and-dividend extraction scenario.
Use the calculator below to create a quick planning estimate based on the figures you enter. Results are for guidance and should be checked against current UK tax rules and HMRC guidance where appropriate.
Salary vs Dividend Calculator
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Illustrate a simplified salary-and-dividend extraction scenario.
Illustrative only. It does not model every Corporation Tax, employer NIC, dividend-tax or personal-income interaction.
How to use this calculator
Enter the figures that best match your situation and select the calculation button. The result is intended as a useful planning estimate rather than a substitute for a tax return or professional advice.
Keep your figures up to date when tax rates, thresholds, costs or business circumstances change.
Frequently Asked Questions
What does the Salary vs Dividend Calculator show?
It provides a simplified illustration of taking money from a limited company through salary and dividends.
Does it calculate the exact most tax-efficient salary and dividend mix?
No. There is no universal answer because Corporation Tax, Income Tax, dividend tax, National Insurance, allowances and company circumstances can all affect the result.
Are dividends an allowable business expense?
Generally, dividends are distributions of company profits rather than an expense deducted from company profits for Corporation Tax.
Can a company pay dividends whenever it wants?
Dividends generally need to be paid from available distributable profits and should be supported by appropriate company records.
Should I use an accountant before changing how I take money from my company?
It can be sensible to get professional advice before making a significant change, particularly where profits, pensions, National Insurance or other income are involved.
Important information
This calculator provides an estimate for general planning and educational purposes. It is not a tax return, accounting record or personalised professional advice. Tax rules, rates and thresholds can change, and individual circumstances can affect the result.