Salary vs Dividend Calculator

What is the most tax-efficient way to pay yourself from your limited company in 2024/25? Compare salary, dividends and the optimal combination.

Amount to extract from company (£/year)

Other income this year (£)

Company has other employees?

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Fill in the details to get your result.

How This Works

The most tax-efficient limited company extraction in 2024/25: take a salary at the NI secondary threshold (£9,100 for single directors, or £12,570 if Employment Allowance is available) to gain a corporation tax deduction without triggering employer NI. Extract remaining profits as dividends — taxed at 8.75% (basic rate) vs 20% income tax + NI on salary. The £500 dividend allowance applies.

The Employment Allowance (£5,000 in 2024/25) reduces your employer NI bill. You can claim it if you have more than one employee — but single-director limited companies with no other employees cannot claim it. If you have an employee (even part-time), Employment Allowance changes the optimal salary to £12,570 (personal allowance), saving additional corporation tax. Claim via your payroll software.