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For limited company directors · 2026/27
2026/27 dividend tax rates
10.75% (basic rate), 35.75% (higher rate) and 39.35% (additional rate), after a £500 tax-free dividend allowance. Most single directors do best with a £12,570 salary and the rest as dividends.
Calculators
Dividend tax to pay
£3,171
10.6% of your dividends
Tax and NI on the salary
£0
Take-home from both
£39,399
Best option: a £12,570 salary plus £29,399 in dividends, leaving you £38,862.
| Salary | Dividends | Corporation Tax + employer NI | Your tax + NI | You keep |
|---|---|---|---|---|
| £12,570 | £29,399 | £8,031 | £3,107 | £38,862 |
| £5,000 | £36,450 | £8,550 | £3,051 | £38,399 |
| £0 | £40,500 | £9,500 | £2,949 | £37,551 |
| £44,130 | £0 | £5,870 | £8,837 | £35,294 |
Estimate only, not tax advice. 2026/27 rates for England, Wales and Northern Ireland; one director with no other income, all profit paid out, no Employment Allowance (not available to single-director companies), no pension contributions.
Rates
| Band (taxable income) | Dividend rate |
|---|---|
| Dividend allowance (first £500) | 0% |
| Basic rate (£12,571 to £50,270) | 10.75% |
| Higher rate (up to £125,140) | 35.75% |
| Additional rate (over £125,140) | 39.35% |
Bands shown for someone with the standard personal allowance, which is reduced by £1 for every £2 of income over £100,000.
How it works
Not sure a limited company is worth it? Compare with our sole trader vs limited company calculator. Doing construction work? See the CIS calculator.
General information using 2026/27 rates for England, Wales and Northern Ireland, not tax advice. Scottish Income Tax bands differ for salary, but dividend tax rates are UK-wide.