Recommended
Estimated take-home£106,022.4946.99% total effective tax
- Salary
- £131,087.00
- Dividend
- £40,499.96
- Personal tax & NI
- £65,564.47
- Employer NI
- £18,913.05
- Corporation Tax
- £9,499.99
Find your best salary and dividend split
Compare the combined impact of salary, dividends, Corporation Tax and National Insurance for a single owner-director.
Step 1
Tell us about the company
Difference across options£2,468.832.38% more take-home than the lowest result
Choose the rules used throughout this calculation.
After ordinary business expenses, before director salary, employer National Insurance and Corporation Tax.
Step 2
Recommended split
Of the combinations tested, this option produces the highest estimated take-home income.
Lowest take-home
Estimated take-home£103,553.6648.22% total effective tax
- Salary
- £50,270.00
- Dividend
- £108,810.53
- Personal tax & NI
- £55,526.87
- Employer NI
- £6,790.50
- Corporation Tax
- £34,128.97
Step 3
How salary affects your take-home pay
Compare estimated take-home pay across different salary levels for £200,000 of company profit before director pay.
Best take-homeLowest take-home
Add to chartGross amounts before personal tax
How this chart is calculated
Salary examples are spaced by £5,000. Key tax thresholds are also checked, and important changes are narrowed to the nearest £1.
Best take-home
- Salary
- £131,087
- Dividend
- £40,500
- Effective tax
- 47.0%
Lowest take-home
- Salary
- £50,270
- Dividend
- £108,811
- Compared with best
- £2,469 less
How the salary and dividend calculator works
Tax Shrink compares possible director salaries from £0 to the amount the company can afford. For each salary it deducts employer National Insurance and Corporation Tax, treats the remaining distributable profit as a dividend, then estimates personal Income Tax and employee National Insurance.
The model covers a full-year owner-director with a 12-month accounting period, no associated companies and no Employment Allowance. It is illustrative and does not cover every relief or personal circumstance.
How to choose a salary and dividend split
There is no single salary-to-dividend ratio that works at every profit level. Tax thresholds change the result, so the calculator compares the full affordable salary range and shows both the highest and lowest estimated take-home options for the figures entered.
Read the full methodology, assumptions and official sources