2026 / 27 Tax Year

Dividend vs Salary
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Find the most tax-efficient salary and dividend split for your Ltd company profit level. Compares five common strategies side by side using 2026/27 rates.

Your numbers
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Annual revenue minus business costs, before paying yourself
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Or type any amount — results update instantly
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Employment income, rental, freelance — affects dividend tax bands
Optimal strategy for your profit level
£—
Strategy Salary Total Tax Take-Home
Tax breakdown for your current salary — where does the money go?

A contractor accountant will save you far more than they cost. Most charge £80–£120/month and handle payroll, dividends, and annual accounts.

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2026/27 rates: Personal allowance £12,570, basic rate 20% to £50,270, higher rate 40% to £125,140, additional 45% above. Dividend allowance £500. Dividend rates 8.75% / 33.75% / 39.35%. Corporation tax 19% (profits ≤£50k) / 25% (profits ≥£250k) with marginal relief. Employee NI 8% (£12,570–£50,270), 2% above. Employer NI 15% above £5,000. Employment Allowance (£10,500) not applied — consult your accountant. Scotland rates applied where selected. Figures are estimates. Not tax advice.