Salary or Dividend?
Your company will save you tax every year, if you find your best combination of salary and dividends.
How to do this:
Your company can pay you a salary
- you pay income tax on salary exceeding the personal allowance
- you pay Class 1 employee national insurance (NICs)
- and your company pays Class 1 employer NICs (if salary exceeds limits)
- salary and Class 1 employer NICs are deducted from company taxable total profits
and / or your company could pay you a dividend
- you pay income tax at applicable rate(s) if higher or additional rate taxpayer
- company taxable total profits are calculated without deducting the dividend
and / or you could retain some profits in your company.
- your company pays corporation tax on retained profits
To save tax, you must calculate your best combination of salary, dividends and retained profits.
Salary v Dividends Calculator
You are just one click from your best combination.
Salary v Dividends Calculator
- shows you exactly how much of each tax you pay for any earnings, salary, dividend and retained profit
- ensures you have sufficient earnings to pay your desired combination and resultant taxes
- finds your most tax efficient combination
- is unrivalled for accuracy and ease of use
Salary v Dividends Calculator
- presently performs 2010/2011, 2011/2012 and 2012/2013 calculations
- 2013/2014 and 2014/2015 predictions coming soon
and calculates full effects of
- personal allowance restriction where income exceeds £100,000
- additional 50% income tax and 42.5% dividend tax rates where taxable income exceeds £150,000
and from 1 April 2011
- £1,000 personal allowance increase
- basic rate income tax limit decrease
- corporation tax small profits rate 1% decrease
- corporation tax main rate 2% decrease
- all national insurance rates 1% increase
- all national insurance upper limits decrease
- Class 1 national insurance secondary threshold lower than primary
Why spend your time on these calculations?
Order Salary v Dividends Calculator and let us help you.
Tax rates and analysis
- all the rates, thresholds and allowances we take into account for your calculations
Screenshots
- 2010/2011 and 2011/2012 calculations and 2012/2013 predictions
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tax software for accountants and businesses since 1999