Salary and dividend calculator
Compare ways to take money from your company as salary and dividends. Start with profit and see what you keep after company tax, personal tax and National Insurance.
£55,765 in your pocket, with a salary of £12,570 plus dividends after company tax
This is the highest take-home of the options compared. All salary would leave £51,283, a difference of £4,481 a year.
| Salary | £5,000secondary threshold | £6,708lower earnings limit | £12,570personal allowance | £70,217all salary |
|---|---|---|---|---|
| Employer NI | £0 | £256 | £1,136 | £9,783 |
| Corporation tax | £16,125 | £15,604 | £13,818 | £0 |
| Dividend | £58,875 | £57,431 | £52,476 | £0 |
| Personal tax and NI | £8,863 | £8,957 | £9,282 | £18,934 |
| In your pocket | £55,012 | £55,182 | £55,765 | £51,283 |
| Total tax as % of profit | 31.2% | 31.0% | 30.3% | 35.9% |
A salary at the £5,000 secondary threshold costs no National Insurance but sits below the £6,708 lower earnings limit, so it earns no State Pension qualifying year. The lower earnings limit row is the cheapest salary that does.
| Profit | Best preset salary | Split | All salary | Difference |
|---|---|---|---|---|
| £40k | £12,570 | £31,633 | £29,033 | £2,600 |
| £80k | £12,570 | £55,765 | £51,283 | £4,481 |
| £150k | £5,000 | £85,321 | £81,262 | £4,058 |
| £300k | £5,000 | £150,742 | £150,393 | £349 |