Salary & Dividend Optimizer
Find the most tax-efficient way to pay yourself
Calculate the optimal salary and dividend split for UK company directors. Side-by-side comparison showing income tax, National Insurance, Corporation Tax, and net take-home pay for different strategies.
Free during Early Access - No credit card required
Capabilities
Optimal salary and dividend split calculation for directors
Side-by-side comparison of different remuneration strategies
Income tax calculation across all bands including Scottish rates
Employee and employer National Insurance contribution breakdown
Corporation Tax impact calculation including marginal relief
Net take-home pay calculation after all deductions
Pension contribution impact modelling
Updated automatically for current tax year thresholds and rates
How It Works
Enter your company profit
Input your estimated annual profit before tax. The calculator uses this to model different extraction strategies.
See the optimal split
AccountsOS calculates the most tax-efficient combination of salary and dividends based on current tax thresholds.
Compare strategies
View a side-by-side breakdown of income tax, NI contributions, corporation tax, and net take-home for each approach.
Plan your payments
Use the results to plan your monthly salary and quarterly dividend payments throughout the year.
Use Cases
First-year director planning
Newly incorporated? Work out the best way to pay yourself from day one. The calculator shows exactly why the salary threshold matters.
Year-end dividend decision
Before your accounting year ends, model how much to take as a final dividend to optimise your overall tax position.
Growing profit scenarios
As your company grows, the optimal strategy changes. Model different profit levels to see how your take-home scales.
Pension vs. dividend trade-off
Compare the tax benefit of increasing pension contributions versus taking additional dividends. See the net impact clearly.
Benefits
Maximise your take-home pay legally and compliantly
Understand exactly how each pound is taxed across salary, dividends, and corporation tax
Make informed decisions about how to extract profit from your company
See the real-world difference between strategies in pounds and pence
Stay up to date with annual threshold changes without manual research
Reduce your overall tax burden through optimal planning
Frequently Asked Questions
Why not just take everything as salary?
Salary above the NI threshold attracts both employee NI (8%) and employer NI (13.8%), making it significantly more expensive than dividends. The optimal strategy typically involves a small salary at the NI threshold plus dividends.
What salary level does the calculator recommend?
For most directors, the optimal salary is at the NI secondary threshold — currently £9,100 per year. This minimises NI while still qualifying for State Pension credits. The calculator shows why this works.
How accurate are the calculations?
We use the current tax year rates and thresholds from HMRC. The calculator accounts for income tax bands, NI thresholds, dividend allowance, and Corporation Tax rates including marginal relief.
Does this account for other income?
The calculator focuses on your company director income. If you have other employment or income sources, the optimal strategy may differ. Enter your total expected income for the most accurate results.
Is this legal tax planning?
Absolutely. Choosing between salary and dividends is a standard and legitimate tax planning decision for UK company directors. HMRC expects directors to consider the most efficient structure.
How often do the rates change?
Tax thresholds and rates are updated annually in the Budget or Autumn Statement. AccountsOS updates the calculator each April when new rates take effect, so your calculations are always current.
Ready to try Salary & Dividend Optimizer?
Get started with AI-powered accounting for your UK limited company.
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