Available profit
For limited-company scenarios this is profit before salary, employer NI and corporation tax. For sole trader it's taxable profit.
100% Salary
Salary£52,826
Dividend£0
Employer NI£7,174
Corporation tax£0
Income tax£8,562
Employee NI£3,067
Dividend tax£0
Total tax£18,803
Effective rate31.3%
Net take-home£41,197
100% Dividend
Salary£0
Dividend£47,850
Employer NI£0
Corporation tax£12,150
Income tax£0
Employee NI£0
Dividend tax£3,739
Total tax£15,889
Effective rate26.5%
Net take-home£44,111
£12,570 Salary + Dividend
Salary£12,570
Dividend£37,499
Employer NI£1,136
Corporation tax£8,796
Income tax£0
Employee NI£0
Dividend tax£3,977
Total tax£13,909
Effective rate23.2%
Net take-home£46,091
£5,000 Salary + Dividend
Salary£5,000
Dividend£44,175
Employer NI£0
Corporation tax£10,825
Income tax£0
Employee NI£0
Dividend tax£3,881
Total tax£14,706
Effective rate24.5%
Net take-home£45,294
Sole TraderBest
Taxable profit£60,000
Income tax£11,432
Class 4 NI£2,457
Total tax£13,889
Effective rate23.1%
Net take-home£46,111
Comparison
| Scenario | Salary | Dividend | Total tax | Net take-home | Effective rate |
|---|---|---|---|---|---|
| 100% Salary | £52,826 | £0 | £18,803 | £41,197 | 31.3% |
| 100% Dividend | £0 | £47,850 | £15,889 | £44,111 | 26.5% |
| £12,570 Salary + Dividend | £12,570 | £37,499 | £13,909 | £46,091 | 23.2% |
| £5,000 Salary + Dividend | £5,000 | £44,175 | £14,706 | £45,294 | 24.5% |
| Sole Trader | — | — | £13,889 | £46,111 | 23.1% |
Illustrative figures for the 2026/27 UK tax year (England, Wales & NI). Assumes no other income, no student loan, no pension contributions, standard personal allowance, employer NI with no Employment Allowance, corporation tax with marginal relief between £50k–£250k, and standard dividend allowance of £500. Not tax advice.