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Tax year 2026/27
UK salary vs dividend calculator for directors, 2026/27
From 6 April 2026, dividends above the £500 allowance are taxed at 10.75% (basic), 35.75% (higher) and 39.35% (additional). Enter your company profit and a salary to see Corporation Tax, National Insurance, income tax, dividend tax and net pay to the director at £5,000, £12,570 and your own salary.
- Free, no sign-up for the result
- Scottish bands
- Sources on GOV.UK
Rates last checked 13 October 2026 against GOV.UK
Assumes a 12-month period, the director is the only employee, no Employment Allowance, all profit after tax is paid out as dividends, and no other income. Scottish bands apply to salary only; dividend rates are UK-wide.
| Salary | £5,000.00 | £12,570.00 | £30,000.00 (yours) |
|---|---|---|---|
| Company profit before salary | £100,000.00 | £100,000.00 | £100,000.00 |
| Director salary | £5,000.00 | £12,570.00 | £30,000.00 |
| Employer NI | £0.00 | £1,135.50 | £3,750.00 |
| Corporation Tax | £21,425.00 | £19,118.04 | £13,806.25 |
| Dividends paid | £73,575.00 | £67,176.46 | £52,443.75 |
| Employee NI | £0.00 | £0.00 | £1,394.40 |
| Income tax on salary | £0.00 | £0.00 | £3,486.00 |
| Dividend tax | £14,118.04 | £14,536.83 | £13,627.40 |
| Net to director | £64,456.96 | £65,209.63 | £63,935.95 |
Rates for the 2026/27 tax year from GOV.UK. Check HMRC guidance for your circumstances.
How the calculation works
- Example. A £12,570 salary plus £37,700 of dividends in England: dividend tax is (£37,700 − £500) × 10.75% = £3,999.00.
- Salary comes off profit first. The salary and employer NI (15% above £5,000) are deducted before Corporation Tax with Marginal Relief. What is left after Corporation Tax is paid out as dividends.
- Salary tax. Employee NI is 8% between £12,570 and £50,270 and 2% above. Income tax uses the bands for where the director lives; see the take-home pay calculator.
- Dividends sit on top of salary. The first £500 is tax free, and the rest is taxed at the rate of the band it falls in. Scottish bands apply to salary only; dividend rates are the same across the UK.
- Not included: Employment Allowance, pension contributions, student loans, other income, director's loan accounts and accounting periods other than 12 months.
This is an illustration for general information, not tax or financial advice. Check your own position with an accountant or on GOV.UK.
Rates for the 2026/27 tax year
- GOV.UK: Tax on dividends
- GOV.UK: Corporation Tax rates and allowances
- GOV.UK: Rates and thresholds for employers 2026 to 2027
- GOV.UK: Income Tax in Scotland
Last checked 13 October 2026.