Rates are for the 2026/27 tax year. Enter the company’s profit before the director’s salary, choose a salary, and the calculator shows what the company pays, what the director pays and what is left.
2026/27 rates. Corporation Tax 19% to £50,000, marginal relief to £250,000, 25% above. Dividend allowance £500; dividend rates 10.75%, 35.75%, 39.35%. Employer NI 15% above £5,000. Assumes no other income, no pension contributions and one shareholder. An estimate to frame a conversation, not advice.
What the calculator does
It takes the company’s profit before the director’s salary, deducts the salary and any employer National Insurance, and applies Corporation Tax to what is left. The balance is what the company can pay out as dividends.
It then works out the director’s Income Tax on the salary, employee National Insurance and the tax on the dividends, and shows what reaches the director. The last line is the total tax on the profit and the effective rate.
What it leaves out
It assumes one shareholder, no other income and no pension contributions. Any of those changes the answer.
Finstem sets the salary and dividend mix for each client before the year end, once the actual figures are known, and puts the reasoning in writing.
