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Dividends vs Salary Optimiser

If you're a limited company director, the way you pay yourself matters. The right split between salary and dividends can save you thousands in tax every year — but the optimal strategy depends on your profit level, and it changes as the tax rules change. Use our free calculator to find your most tax-efficient option for the current tax year. Enter your company's gross profit and we'll work out the rest.

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Optimal Strategy
Estimated annual take-home pay
BreakdownAmount
Things to know

Tax-efficient doesn't always mean the right choice.

This calculator finds the salary and dividend split that minimises your total tax bill. But in practice, several factors can make a different strategy the smarter move:

Pension contributions
Salary sacrifices and employer contributions can dramatically change the optimal strategy.
Child Benefit
Income above £60,000 triggers the High Income Child Benefit Charge — a lower salary might save you more overall.
Childcare entitlements
30 hours free childcare and Tax-Free Childcare are lost if your adjusted income exceeds £100,000.
Mortgage applications
Most lenders assess your salary, not dividends. A higher salary might help you borrow more.
Student loan repayments
Repayment thresholds and rates vary by plan — the interaction with dividends isn't straightforward.
State Pension
Your salary needs to be above a minimum threshold to count as a qualifying year for your State Pension.

The right strategy depends on your whole picture — not just a tax calculation. That's where having an accountant who understands the detail makes a real difference.

We help limited company directors find the strategy that actually works best for their circumstances — not just the one that looks best on paper. If you'd like to talk it through, book a free consultation and we'll review your situation properly.

This calculator provides estimates based on standard UK tax rates for the selected year and should not be treated as financial advice. Your actual position may differ based on other income, pension contributions, benefits, and personal circumstances. Always seek professional advice before making decisions about your remuneration strategy.
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