Salary and dividend tax calculator UK (2026/27)

AfterTaxUK Editorial Team · Sources and calculation reviewed 22 October 2026

What the calculation includes

The entered company profit is before director remuneration. The tool deducts salary and employer NI, estimates Corporation Tax, and applies the distribution percentage to the remaining profit. Employer NI uses the standard 15% rate above £5,000 for 2026/27. Employment Allowance and special NI categories are excluded.

For the individual, salary is taxed before dividends. Combined salary and dividends determine the Personal Allowance taper. The £500 dividend allowance gives a zero rate on that slice while still using the income bands. Employee NI applies to salary; dividend income is not charged employee NI in this model.

Worked example: £60,000 before remuneration

With £60,000 company profit, a £12,570 salary and all remaining post-tax profit distributed, the same calculation used by the tool gives:

Employer NI

£1,135.50

Company taxable profit

£46,294.50

Corporation Tax

£8,795.96

Dividend distribution

£37,498.55

Personal dividend tax

£3,977.34

Personal annual take-home

£46,091.20

This is an annual illustration with no other income, pension or student loan. It assumes a 12-month company period aligned with the personal tax-year illustration. It does not compare every remuneration method or assess dividend legality.

Official sources and next steps

• GOV.UK: tax on dividends
• HMRC: Corporation Tax rates and marginal-relief limits
• HMRC: marginal-relief eligibility and associated companies
• HMRC: 2026/27 employer NI rates and thresholds
• Director salary and dividend guide