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Salary vs dividends calculator for company directors

Repo-linked (EBLR): your rate rises by the same 0.25% at the next reset date, unless your lender holds back some of it. Resets happen at least once every three months, so expect the change within about three months of 7 October.
MCLR-linked: your lender's own cost of funds drives the rate and it resets on its own date, often every six or twelve months. The effect arrives later and may be smaller. Our guide to [[blog:eblr-vs-mclr-home-loan|EBLR and MCLR]] explains the difference.
Fixed rate: nothing changes until the fixed period ends.

You run your own limited company. See what you keep if you take money as salary, or as a small salary plus dividends.

Estimate for 2026/27, England. Corporation tax 19% to 25% with marginal relief; dividend rates 10.75%, 35.75%, 39.35%; employer NI 15% above £5,000.

Common questions

What are the dividend tax rates in 2026/27?

10.75% basic rate, 35.75% higher rate and 39.35% additional rate, after a £500 dividend allowance.

Why take a £12,570 salary?

It uses your tax-free Personal Allowance and costs little or no employer National Insurance.