UK Dividend vs Salary Calculator

The UK Dividend vs Salary Calculator is a free, no‑sign‑up web tool that helps UK limited company directors determine the most tax‑efficient mix of salary and dividends for their personal income.

It calculates income tax, National Insurance, dividend tax and corporation tax in one place, using the latest 2026/27 rates (including dividend allowance, tax bands and corporation tax marginal relief). Users can input company profit before salary, other personal income, employer pension contributions and director NI status to see side‑by‑side comparisons of three strategies: pure salary, pure dividends and an optimised split.

Key features:

• Updated for April 2026 dividend tax rates and 2026/27 income tax/NI bands.
• Salary planner tab lets you drag a slider to see how different salary levels affect total tax, net take‑home and effective marginal rates.
• Incorporates corporation tax marginal relief (26.5% rate in the £50k‑£250k profit band).
• Shows impact of employer pension contributions on tax efficiency.
• Provides clear explanations of how salary and dividends are taxed, including the 60% tax trap and dividend allowance.

Target audience: UK limited company directors, contractors and small business owners who need to optimise their remuneration strategy to minimise personal tax while remaining compliant.

Value proposition: By modelling different salary/dividend splits, directors can avoid overpaying tax by thousands of pounds each year and make informed decisions about profit extraction, pension contributions and mortgage applications.