Salary Vs Dividend Calculator 2026/27
Compare salary and dividends under 2026/27 rates — 10.75% / 35.75% / 39.35% after the £500 allowance. Enter figures manually; this tool is separate from your journey results.
Tax calculations may not reflect all individual circumstances.
Total available for salary + dividends
PAYE salary from your company
Dividend payments from profits
What This Calculator Models
Enter a salary and a dividend (or move the sliders) to see how that mix is taxed under the UK rates in the model: income tax and employee National Insurance on salary, employer NI where it applies, corporation tax on company profit, and dividend tax on what is distributed to you.
The personal allowance, dividend allowance and NI thresholds used are the same building blocks as Kumberi’s limited-company journeys. This page is still a standalone illustration — it does not read a saved journey and it does not file a tax return.
Worked Example (Illustrative)
The defaults start at £12,570 of salary — the personal allowance for a typical English taxpayer in the model’s current tables — plus £30,000 of dividends. Salary within the allowance is not charged to income tax, but National Insurance can still apply depending on the NI thresholds for that year. Dividends use the dividend allowance then dividend tax bands, after corporation tax has already been paid on the profits they came from.
Moving the same cash into a higher salary increases PAYE and both employee and employer NI, and can reduce corporation tax because salary is deductible. There is no “best” split on this page: the chart shows the tax under each mix so you can inspect it. Directors’ loan repayments are a different cash movement and are not treated as a dividend.
What This Page Does Not Do
- This is not tax advice, payroll software, or a recommended extraction policy.
- Scottish or Welsh rates, the High Income Child Benefit Charge, student loans and pension contributions belong in a full journey if they apply to you.
- Section 455 on an overdrawn directors’ loan is explained in the DLA guide; it is not a dividend tax.
- Your accountant’s software may round or time items differently from this illustration.
Related Guides
Common Questions
What does salary versus dividend compare?
How a given amount extracted from a limited company is taxed if taken as salary, as dividend, or as a mix, using the income tax, NI, corporation tax and dividend rates in the model for the selected year.
Does this include employer NI and corporation tax?
The illustration uses the same UK tax building blocks as Kumberi’s director modelling: PAYE and employee NI on salary, employer NI where applicable, corporation tax on profits, and dividend tax on what is distributed. Exact payroll treatment can still differ from your accountant’s software.
Is there a recommended split?
No. The tool does not optimise or recommend an extraction policy. It shows tax under stated assumptions. Directors’ loan repayments are a separate cash movement and are not a dividend.