Salary or dividends? An illustration for 2026/27
See how a director's pay mix could compare for a company with one director-shareholder. Enter your company's profit before your own pay and the salary you have in mind.
Rates for tax year 2026/27 · last checked 9 Oct 2026
What you keep each year
Your salary + dividends
£0
All as salary
£0
The full breakdown
Illustration only: an estimate based on the assumptions below, not advice. What you actually pay depends on your circumstances. Speak to us before acting.
What this illustration assumes
- 2026/27 tax year rates for England, Wales and Northern Ireland, checked on 9 October 2026. Scottish income tax rates on salary are not modelled. The Budget on 28 October 2026 may change rates for later years.
- One director who is the only shareholder, with no other income, no pension contributions and no student loan.
- A 12-month company accounting period with no associated companies, with Corporation Tax at the rates for the financial year that starts on 1 April, just before the tax year begins.
- All profit left after salary, employer National Insurance and Corporation Tax is paid out as dividends in the same tax year. The company has enough distributable profits to pay them.
- "All as salary" means the whole profit is used to pay salary plus the employer National Insurance on it.
- It does not cover pensions, benefits in kind, student loans, the High Income Child Benefit Charge, IR35 or the company's cash position.
- Rates and thresholds come from GOV.UK and legislation.gov.uk. Check the "last checked" date at the top.
Questions about your own position: hello@ibandco.co.uk or 020 7164 0225.
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