The two ways money leaves a limited company, salary and dividends, made clear. Play with it to see what lands in your pocket and what stays in the business.
Heads up: every figure here is a year at a time, unless it says a month.
Start with
Your business profit
What your business makes in a year, before you pay yourself anything. This is not the same as what you take, that comes next.
A small salary builds your state pension, keeps maternity and mortgage options open, and is tax-deductible for the company. There are three sensible levels this year.
£
You are using your full tax-free personal allowance. Employer NI applies above £5,000, and a single-director company does not qualify for the Employment Allowance, but the salary is tax-deductible for the company, so this is usually the most efficient overall.
Route 2 · from profit after tax
Your dividends
A dividend is a share of the profit left after the company has paid its corporation tax. You do not have to take it all. Leaving some in the business, retained profit, gives you a buffer and money to reinvest.
Profit available to take as dividends (a year)£37,499
£
Left in the company (a year)£0
Where your £60,000 of profit goes
To you
£46,091
77% of profit
a year, after tax · £3,841 a month
To HMRC
£13,909
23% of profit
a year, all your taxes
Your full year, step by step
Company profit£60,000
Your salary-£12,570
Employer NI-£1,136
Corporation tax-£8,796
Available for dividends£37,499
Dividends you take-£37,499
Left in the company£0
Salary in your pocket£12,570
Dividends in your pocket£33,521
Your take-home£46,091
Send this to your dashboard. Set your monthly pay so the dashboard knows what you plan to take.
Build it backwards · striveX
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A guide for the standard single-director setup on 2026/27 rates, not personal advice. Confirm with your accountant. Your numbers stay in your own browser.
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