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Salary v's Dividend Calculator

Calculate how much Tax and N.I. you could save by issuing dividends rather than salary to shareholders and directors. Enter the approximate Pre-Tax Profit for the Company in the Pre-Tax Profit box on the right followed by your current Salary and a lower Salary to test. Lower salaries produce greater savings as up to 23.8% of salary can go in N.I. Around £5,000 seems to be most tax efficient.

Company Pre-Tax Profit
(£0-£250,000)
Current Annual Salary
(£0-£250,000)
Reduced Salary
(£0-£50,000)


Results

Tax Due with existing Salary
Tax Due with new Salary & Dividends
Saving

Dividends make up for a low salary. The Dividend as calculated provides an estimate of the total Net Dividend that can be taken before 40% tax is due. For joint shareholdings the Dividend can be doubled.

All figures assume there is NO other taxable income to be taken into account.





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