Understand your take-home pay — before you make decisions.
Use our salary vs dividends UK calculator to estimate how much you could take home after tax. Designed for PAYE employees and UK limited-company directors, this tool helps you compare salary, dividends, and overall tax efficiency using current UK tax rules.
Estimates only. Not tax advice.
Estimate only for UK limited-company with a single director/shareholder. PAYE salary + dividends only. Not tax advice.
This calculator is designed for UK limited company directors who take income through a combination of PAYE salary and dividends. It estimates how much you could take home after income tax, National Insurance, corporation tax, and dividend tax, based on current UK tax rules.
You can enter your company’s profit before salary, choose a salary level, and optionally include other taxable income such as pensions, rental profit, or savings interest. The calculator then shows your estimated personal take-home pay and the total tax paid.
In addition to showing the result for your chosen salary, the calculator automatically tests many different salary levels to find the split that produces the highest overall take-home pay within this simplified model. This helps highlight whether your current approach is close to the most tax-efficient option.
If you enter a target monthly take-home amount, the calculator will show whether your chosen salary meets that goal and whether there is a surplus or shortfall over the tax year. This can be useful for budgeting and cash-flow planning.
This tool provides estimates only and does not constitute tax advice. It assumes a single director/shareholder and uses simplified tax calculations, including an approximation of corporation tax marginal relief. Individual circumstances can vary, and more complex situations may produce different results.
For tailored advice based on your full circumstances, you should always speak to a qualified accountant or tax adviser.
Dividend tax rates and allowances are set by HMRC and can change each tax year.
https://www.gov.uk/tax-on-dividends
https://www.gov.uk/director-responsibilities
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