What is Dividend vs Salary Optimiser?
The Dividend vs Salary Optimiser is a free UK tax calculator built for limited company directors who want to find the most tax-efficient way to pay themselves. It models the 2026/27 tax year and calculates income tax, National Insurance, dividend tax, and corporation tax in one place. Instead of juggling spreadsheets or guessing, you enter your company profit, other personal income, pension contributions, and number of associated companies — and the tool shows you the optimal salary/dividend split.
The calculator is updated for April 2026 rates, including the NI secondary threshold (£9,100) and personal allowance (£12,570) strategies. It also accounts for the 26.5% marginal relief trap on corporation tax, which is where many directors lose money without realising it.
Who it's for
- Limited company directors — anyone running their own UK company who wants to minimise their personal and corporate tax bill without paying for an accountant every time they tweak their pay.
- Newly incorporated business owners — those setting up their first salary and dividend structure and needing a clear, data-backed starting point for 2026/27.
- Directors with complex income — individuals with rental income, employment income, or pension contributions who need to see how those interact with their company pay before deciding on a split.
Key features
Side-by-side strategy comparison
The tool compares three approaches on the same company profit: pure salary, pure dividends, and an optimised split. This makes it easy to see exactly how much tax each strategy triggers and why the optimised route usually wins.
Interactive marginal rate slider
Drag the salary slider to see how each extra pound affects your total tax bill, net take-home, and effective marginal rate. This is particularly useful for understanding the 26.5% corporation tax marginal relief zone between £50k and £250k profit.
Full 2026/27 tax band coverage
All relevant bands are built in: income tax bands up to the additional rate, the tapered personal allowance above £100,000, dividend tax rates, and employer's National Insurance at 15% above the £9,100 secondary threshold.
Pension contribution integration
You can include employer pension contributions, which reduce taxable profit and save corporation tax. The tool shows how pension contributions shift the optimal salary level — something most basic calculators ignore.
What stands out
Getting this wrong can cost thousands of pounds a year in unnecessary tax.
Most salary vs dividend calculators only look at income tax and dividend tax in isolation. This one models the full interaction between corporation tax marginal relief and personal taxes, which is where the real savings hide. The inclusion of the NI secondary threshold strategy — taking £9,100 as salary to secure a State Pension qualifying year while avoiding employer NI — is a detail many directors overlook. And because it's free with no sign-up, you can run unlimited scenarios before deciding on your pay structure.
Worth checking out if…
You're a UK limited company director who wants a fast, accurate answer to "how should I pay myself in 2026/27?" — especially if your company profit sits in the £50k–£250k band where the marginal relief trap applies. It's also worth a look if you have other personal income or pension contributions that complicate the simple salary-at-personal-allowance rule of thumb. The tool won't replace professional advice for complex situations, but it will give you a solid, up-to-date baseline before you talk to your accountant.
