Optimise Salary to Dividend ratio
What is the best salary dividend split to maximise the net income for a Limited company in the UK with a single owner employee director?
When you own a Limited company in the UK you can pay yourself in dividends and salary. However, at a minimum, you have to consider the interdependencies of employee and employer NI, income tax, corporation tax, dividend tax, dividend allowance, personal allowance, corporation tax relief and the various tax bands. While there are calculators for some of these, there is no solution to compute them all at once. This tool does that1.
Assume all expenses and costs except national insurance, dividend, and corporation tax are already deducted from the revenue.
Net Income vs Salary for £200,000 1
Net Income Range1
The difference in net income could be N/A which is N/A% above the minimum.