Dividend Tax Calculator UK 2025/26
Calculate the optimal salary/dividend split for your limited company. Minimize tax on director income using 2025/26 rates for UK trade businesses.
Company Profit
Optimal: £12,570 (personal allowance threshold)
Income Breakdown
Tax Analysis
Take Home Pay
£45054
After all taxes
Tax Breakdown
💡 Optimization Tip
Optimal salary: £12,570 (personal allowance). Take remainder as dividends to minimize NI. Effective rate: 24.9% on £60000 profit.
What this means
Balanced mix — protect NI then use dividends
This blend saves tax today (effective rate 24.9%) but remember dividends don’t build pension entitlement.
Review annually: younger directors should push salary toward £50,270 to maximise state pension; established directors can keep salary low plus dividends.
💷 Track Salary vs Dividends in Toolfy
Stay in the optimal tax band automatically. Toolfy shows you exactly when to take salary vs dividends:
Year-to-date tracking
See salary + dividends taken so far this tax year
Tax-optimized recommendations
Get alerts before crossing into higher tax bands
Auto dividend minutes
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