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Salary & Dividend Split
Find the optimal salary vs dividend split to minimise total tax when extracting profit from your limited company. The calculator tests every salary level in £1,000 steps to find the combination with the lowest overall tax burden.
Optimal Strategy
Salary
£12,570
Dividends
£52,476
Take-Home
£56,929
Total Tax
£23,071
Tax Breakdown (Optimal)
Salary£12,570
Employer NI£1,136
Corporation Tax£13,818
Dividends Paid£52,476
Income Tax on Salary£0
Employee NI£0
Dividend Tax£8,117
Total Tax£23,071
Take-Home£56,929
Effective Tax Rate28.84%
Scenario Comparison
Key salary levels compared side by side. The highlighted row is the optimal salary level.
| Salary | Emp. NI | Corp Tax | Dividends | Div Tax | IT + NI | Total Tax | Take-Home |
|---|---|---|---|---|---|---|---|
| £0 | £0 | £17,450 | £62,550 | £8,374 | £0 | £25,824 | £54,176 |
| £5,000 | £0 | £16,125 | £58,875 | £8,384 | £0 | £24,509 | £55,491 |
| £12,570Best | £1,136 | £13,818 | £52,476 | £8,117 | £0 | £23,071 | £56,929 |
| £50,270 | £6,791 | £4,359 | £18,581 | £6,102 | £10,556 | £27,807 | £52,193 |
IT + NI = income tax on salary plus employee National Insurance. All figures assume 2025/26 UK tax rates. This calculator does not account for pension contributions, salary sacrifice, or student loan repayments on the salary portion. Consult an accountant before making extraction decisions.