Limited company planning
Dividend vs Salary Optimiser
Model the salary and dividend mix that produces the highest take-home from your company income.
Your company
£
£
£
Standard annual allowance: £60,000
Where you pay tax
Tax year
Recommended extraction
Annual take-home
£62,848
£5,237 per month
Effective tax rate
32.2%
Pay yourself
Director salary£12,570
Dividends£63,501
Total personal income£76,071
Tax breakdown
Corporation tax£17,793
Employer's NI£1,136
Income tax£0
Employee's NI£0
Dividend tax£13,223
Optimised across salary points
This mix provides £0 more take-home than the best standard threshold strategy modelled below.
| Strategy | Salary | Dividends | Take-home |
|---|---|---|---|
| Dividends only | £0 | £73,575 | £61,244 |
| Employer NI threshold | £5,000 | £69,900 | £62,096 |
| Personal allowance salary | £12,570 | £63,501 | £62,848 |
Important assumptions
One director and shareholder, no other income, no Employment Allowance, all post-tax profit distributed, and no associated companies. Results are planning estimates, not personal tax advice.