Salary & Dividend Optimiser
Find the optimal salary and dividend mix for a UK limited company director. Models corporation tax, employer NI, employee NI, income tax and dividend tax together so you see the true net position. 2025/26 rates.
Salary & Dividend Optimiser
Find the optimal salary and dividend mix for a UK limited company director. Models corporation tax, employer NI, employee NI, income tax and dividend tax together so you see the true net position. 2025/26 rates.
Pre-tax profit before paying the director salary or dividends.
Assumes no other income, no student loan, standard personal allowance. Not personalised advice.
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Our team works exclusively with agency founders. We can review your situation and confirm how these calculations apply to you.
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Get the salary and dividend planner
A full extraction breakdown at your chosen salary and dividend split, with 2026/27 rates. Shows employer NI, corporation tax, income tax on salary and dividend tax side by side, so you can see the real cost of each extraction decision.
| A | B | C | D | E | F | G | H | I | J | K | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Your figures (edit the blue cells) | ||||||||||
| 2 | Profit before director cost | £120,000 | |||||||||
| 3 | Director salary | £12,570 | |||||||||
| 4 | Use Employment Allowance? | No | |||||||||
| 5 | Your extraction breakdown (2026/27) | ||||||||||
| 6 | Employer NI | £1,136 | |||||||||
| 7 | Corporation tax | £24,418 | |||||||||
| 8 | Dividend tax | £19,667 | |||||||||
| 9 | Net cash: £74,779 (total tax £45,221) | ||||||||||
| 10 | |||||||||||
| 11 | |||||||||||
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How this works
For a UK limited company director, the most tax-efficient extraction strategy typically combines a small salary (up to the primary NI threshold) with dividends from post-tax profits. The calculator models all taxes together so you see the true net position.
It assumes no other income, no student loan, standard UK personal allowance, and no pension contributions. For a tailored model, book a free call.
Frequently asked questions
- What rates does this calculator use?
- UK 2025/26 rates. PA £12,570. Basic rate 20% (up to £50,270). Higher rate 40% (up to £125,140). Additional rate 45%. Dividend allowance £500. Dividend rates 10.75% / 35.75% / 39.35% (FA 2026, from 6 Apr 2026). Employer NI 15% above £5,000 secondary threshold. Employee NI 8% above £12,570. Corporation tax 19% small profits / 25% main rate.
- Does it cover the marginal corporation tax rate?
- Yes. For company profits between £50,000 and £250,000 marginal relief gives an effective rate of 26.5% on that slice. The calculator applies this correctly.
- Is the result personal tax advice?
- No. This is a model based on standard 2025/26 thresholds. It assumes no other income, no student loans, no pension contributions and standard personal allowance. For advice specific to your agency, book a free call.
Want a tailored model for your agency?
Book a free call. We will model your actual position factoring in your specific circumstances, retained earnings and exit timeline.
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