Optimise Salary to Dividend ratio

What is the best salary dividend split to maximise the net income for a Limited company in the UK with a single owner employee director?

When you own a Limited company in the UK you can pay yourself in dividends and salary. However, at a minimum, you have to consider the interdependencies of employee and employer NI, income tax, corporation tax, dividend tax, dividend allowance, personal allowance, corporation tax relief and the various tax bands. While there are calculators for some of these, there is no solution to compute them all at once. This tool does that1.

  
Assume all expenses and costs except national insurance, dividend, and corporation tax are already deducted from the revenue.

Net Income vs Salary for £200,000 1

Net Income Range1

The difference in net income could be N/A which is N/A% above the minimum.

Minimum Net Income

N/A

Maximum Net Income

N/A
Note: 2023/24 tax year uses blended employee NI rate of 11.5% is used since it changed in January 2024 from 12% to 10%. No other incomes or tax reliefs are considered.

Email questions or suggestions to tax-shrink@bolddata.biz.

1Disclaimer: These calculations are simplified and illustrative only. They are not tax advice. There are no guarantees that the calculations are correct, complete, up to date or applicable to your situation. Consult a tax professional for your specific situation before making any decisions.