Directors of Mid-Ulster limited companies often ask the same question: should I take more salary or more dividend? The 2026/27 rates change the arithmetic, but they do not remove the need for judgement. Pensions, mortgage applications, reserves and National Insurance all sit beside the tax tables.
What the numbers include
Salary brings Income Tax, employee NI and employer NI. Dividends are paid from post-corporation-tax profits and attract dividend tax after the dividend allowance. Corporation Tax itself sits at 19% to 25% with marginal relief in between, which is why Corporate Tax planning and personal extraction need to be talked about together.
Our free Salary vs Dividend calculator on the Tools page gives an indicative comparison. It assumes a simple single-director company. Real life includes pensions, benefits, other income and Employment Allowance rules, so treat the tool as a starting point, not a final answer.
Beyond tax efficiency
Salary builds qualifying earnings for pensions and can support mortgage affordability. Dividends need sufficient reserves and proper paperwork. Paying a dividend you cannot support in the accounts is how directors create personal and company problems at the same time.
Banks and investors also look at how you extract value. The cheapest tax split is not always the right commercial answer. If you are preparing for lending, our Banking & Finance work often sits alongside a sensible remuneration review.
Timing through the year
Many Mid-Ulster directors set a salary in April and forget it until January. Rate changes, profit swings and dividend tax bands mean a mid-year review is often worth an hour of your time.
Company accounts and Company Annual Tax filings need to tell a coherent story with what you drew personally. That is also why monthly packs from management accounts help: you see whether the company can still afford the standing orders you set six months ago.
How we sense-check a split
We look at company profit, cash, reserves, other personal income, pension contributions and what you need to live on. Then we model a few options and explain the trade-offs in plain English.
If Self Assessment is approaching, read our note on the Self Assessment Deadline 2027 so dividend vouchers and salary figures are ready for the return. When you want the numbers checked properly, get in touch.
"A split that looked perfect last year can be wrong this year once profits, NI or dividend rates move."
Eoín Brannigan, Gortreagh Consulting