Free toolsSalary vs Dividends Calculator
Free tool
Salary vs Dividends Calculator
Compare director salaries of £6,708, £12,570 and your own figure, with the rest taken as dividends.
Your figures
£
Profit for the year before your salary, employer National Insurance and corporation tax.
Not available when you, as sole director, are the only employee. A second paid director or employee usually makes the company eligible.
£
Compared alongside £6,708 and £12,570.
Most in your pocket
£42,476.57
With a £12,570 salary and the rest as dividends. That is £358.37 more than a £6,708 salary.
The working
A £12,570 salary from £55,000 of profit, the rest as dividends
| Salary of £12,570 | |
|---|---|
| Employer National Insurance: 15% of £7,570 | £1,135.50 |
| Corporation tax: 19% of £41,294.50 | £7,845.96 |
| Salary | £12,570.00 |
| Dividends (profit left after salary, National Insurance and corporation tax) | £33,448.54 |
| Less dividend tax: £32,948.54 at 10.75% | −£3,541.97 |
| In your pocket | £42,476.57 |
| Difference | |
|---|---|
| £12,570 salary against £6,708 salary | £358.37 |
| £12,570 salary against £5,000 salary | £462.80 |
Assumptions
- Tax year 2026/27, England. Salary is paid evenly and worked on an annual basis.
- All profit after corporation tax is paid out as dividends in the same year. No other income.
- Corporation tax 19% up to £50,000 of profit, 25% from £250,000, with marginal relief between. A 12-month period and no associated companies.
- Employer National Insurance 15% above £5,000; employee National Insurance 8% above £12,570. Employment Allowance up to £10,500.
- Dividend allowance £500; dividend tax 10.75%, 35.75% and 39.35%. Figures rounded to the penny.
What this doesn't cover
- Scottish income tax rates on salary.
- Company pension contributions, student loans and the High Income Child Benefit Charge.
- Profits kept in the company for later years, and profits from earlier years.
- IR35, associated companies and other employees' pay.
What it does
Enter your company's profit before paying yourself. For each salary it works out employer National Insurance, corporation tax with marginal relief, dividend tax and what reaches your pocket for 2026/27, with the working shown.
Read the guide behind itAgainst your own numbers
An estimate is useful. Running it against your real accounts is better, and takes about ten minutes.