Is it better to take salary or dividends?

For most limited company directors, taking a low salary and the remainder as dividends is more tax-efficient than a high salary, as dividends are taxed at lower rates than income.

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Dividend vs Salary Calculator

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Company Profit (NZ$)

Director Salary (NZ$)

How to Use

Enter your company profit and director salary to calculate the optimal salary and dividend split for a limited company director. The most tax-efficient director salary is typically set at the NI secondary threshold (£9,100) or personal allowance (£12,570) depending on circumstances. Profits remaining after salary and corporation tax form the dividend pool. This is a simplified estimate — always confirm with an accountant.

Frequently Asked Questions

❓ Frequently Asked Questions

For 2024/25, most accountants recommend a salary of £12,570 (personal allowance) or £9,100 (NI secondary threshold) depending on whether the company has another employee to offset the NI cost.