Compare the tax efficiency of taking dividends versus salary from your limited company.
Tip: \u00a312,570 is the tax-free personal allowance
Total Take Home
£55,430
Effective tax rate: 30.7%
Corp Tax
£16,738
Dividend Tax
£7,353
Income Tax
£0
Employee NI
£0
Employer NI
£479
Total Tax
£24,570
Company directors can choose how to extract profits. The most tax-efficient approach typically involves a small salary at the personal allowance level and the remainder as dividends, though individual circumstances vary.
Managing your business tax obligations efficiently can make a significant difference to your bottom line. You may also find our Corporation Tax Calculator useful for related calculations.
For a broader view of your finances, try the Employer NI Calculator or the Take-Home Pay Calculator. All of our calculators are free to use and updated for the 2026/27 tax year where applicable.
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