Worked example, 2026/27

£200,000 of company profit: salary and dividends in 2026/27

With £200,000 of company profit, a £12,570 salary and the rest paid as dividends, a director living in the UK keeps about £105,765 a year (£8,814 a month) after Corporation Tax, employer National Insurance and personal tax. A director living abroad keeps about £154,081 a year under the calculator's non-resident assumptions, listed below.

What these figures assume

Profit means the company's profit for the year before the director's salary, employer National Insurance and Corporation Tax. Capital allowances and losses are not modelled.
The company is a UK-resident trading company with a 12-month accounting period and no associated companies. An associated company or a shorter accounting period lowers the Corporation Tax profit limits, so the tax can be higher.
The salary and dividends are the director's only income, with no pension contributions, Gift Aid or other reliefs.
The salary is taxed at the income tax rates for England, Wales and Northern Ireland, not the Scottish rates.
The director is the company's only employee, so Employment Allowance is not available to reduce employer National Insurance.

Official rates on GOV.UK: Corporation Tax rates, Tax on dividends

How £200,000 of profit splits into salary and dividends
	Director living in the UK	Director living abroad
Company profit	£200,000	£200,000
Director's salary	£12,570	£12,570
Employer National Insurance	£1,136	£0
Corporation Tax	£45,618	£45,919
Dividends paid	£140,677	£141,511
Income tax on the salary	£2,514	£0
Dividend tax	£44,967	£0
Take-home, a year	£105,765	£154,081
Take-home, a month	£8,814	£12,840

What is behind these figures

Corporation Tax is £45,618 on £186,295 of profit after the salary and employer National Insurance, an effective rate of 24.5%.
Dividend tax for the director living in the UK: £500 at 0% (the dividend allowance), £24,630 at 10.75%, £87,440 at 35.75%, £28,107 at 39.35%.
Income above £125,140 removes the personal allowance entirely, so all £12,570 of the salary is taxed at 20%.
At 2025/26 rates this director would have kept £2,241 more a year: dividend tax rose by 2 percentage points at the basic and higher rates on 6 April 2026.

The assumptions behind the abroad column

All your director duties are performed outside the UK, and UK National Insurance on the salary is taken as nil. Whether that holds depends on social-security rules, certificates and your circumstances; even one board meeting held in London can change the salary and NI position.
There is no UK withholding on dividends, and the "disregarded income" rules normally make a non-resident's UK dividend tax nil. Whether you need a Self Assessment return depends on your other UK income and on whether HMRC asks for one; if you file, the SA109 residence pages go with it.
Your home country may tax this income under its own rules (the UAE and most Gulf states currently have no personal income tax).
Your company normally pays UK corporation tax wherever you live; a tax treaty can change that only in narrow cases, such as a company effectively managed in another country.

Try your own figures in the full calculator, or ask us about your company.

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Disclaimer

This tool is for general guidance only. It does not replace official deadlines, Companies House records, HMRC guidance, or professional advice. Always confirm your own dates and figures with the official sources.