Salary vs Dividends 2026/27: The Optimal Split for UK Contractors
The most common question every contractor asks. Here's the full calculation — exactly how much to pay yourself in salary, and when to switch to dividends.
Read guideFixed monthly fees. No surprises. Expert guidance on salary/dividend planning, IR35, and tax efficiency — from an ICAEW chartered accountant with Big Four training.
Every package includes everything listed — no à la carte surprises. You know exactly what you pay from day one.
Add-ons available: Additional directors · CIS returns · Management accounts · Registered office · Ad hoc advisory
Most accountants serve everyone. We serve contractors exclusively — which means everything we do is tuned to your specific structure, risks, and opportunities.
We don't serve high street shops, hospitality, or complex SMEs. Every client is a limited company contractor or freelancer — so our processes, templates, and advice are built precisely for you.
We model your salary and dividend position quarterly, flag s455 exposure before it hits, and flag tax year-end planning opportunities before April — not after.
Fully qualified, fully insured, ICAEW regulated. GDPR compliant. AML registered. Not a bookkeeper or unregulated tax agent — a chartered accountant to full professional standards.
We use FreeAgent as our core platform. No switching required — most contractors already have it free through their business bank. We work directly in your books.
One monthly fee. No time-billing surprises. No extra charges for "extra queries". Scope is clear from day one — you always know exactly what you're paying for.
Remote-first. Onboarding done digitally. Documents exchanged securely. No unnecessary meetings. We respond promptly and handle things without requiring you to chase us.
I'm an ICAEW Chartered Accountant who trained at Deloitte in audit. After several years in industry working with listed groups — IFRS reporting, consolidations, technical accounting — I'm building a practice focused entirely on contractors and limited companies.
Most contractor accountants charge low fees and process clients at volume. I've built Woodcock Accounting to do the opposite: a small number of clients, properly looked after, with genuine expertise in the areas that matter — salary/dividend planning, IR35, CT, and tax efficiency.
ACA · ICAEW Chartered Accountant · Contractor Specialist
Simple, digital, and structured from day one.
Register your interest now. We'll confirm availability and contact you ahead of January 2027 launch.
30-minute call to understand your situation, answer questions, and confirm the right package for you.
Sign engagement letter, complete ID checks (AML), authorise HMRC access. We handle the rest including contacting your previous accountant if applicable.
FreeAgent connected, compliance calendar built, first tax efficiency review completed. You know exactly where you stand.
Practical guides written by an ICAEW chartered accountant — no jargon, no upselling. Just the things you actually need to know.
The most common question every contractor asks. Here's the full calculation — exactly how much to pay yourself in salary, and when to switch to dividends.
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