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 guide
ICAEW Qualified Chartered Accountant · Contractor Specialists · Now Taking On New Clients
The accountant built specifically for UK contractors and limited companies
Fixed monthly fees. No surprises. Practical guidance on salary and dividend planning, IR35 and tax efficiency — from an ICAEW chartered accountant with Big Four training.
Based in Glossop, on the edge of Greater Manchester — working remotely with contractors across the UK.
ICAEW Chartered Accountant
Big Four trained (Deloitte)
FreeAgent specialists
Fixed monthly fees
Remote-first
2026/27
The numbers that matter this tax year
19%
Corporation tax — small profits rate (under £50,000)
26.5%
Marginal CT rate, £50,000–£250,000 profit band
£90k
VAT registration threshold 2026/27 — act before you're forced to
£50,270
Higher-rate income tax threshold — dividend planning matters here
£95
Our starting fee — the only number we control
Why Woodcock Accounting
Built for contractors. By someone who knows the numbers.
Most accountants serve everyone. We specialise in UK contractors and freelancers operating through their own limited companies — so everything we do is tuned to your specific structure, risks, and opportunities.
Contractor-first focus
Our processes, templates and advice are built specifically for limited company contractors and freelancers — not adapted from generic small business advice.
Proactive, not reactive
We review your salary and dividend position regularly, keep an eye on director's loan exposure, and plan around corporation tax — before your year-end, not after. Higher-tier packages include scheduled reviews; even on Essentials we flag anything that needs attention.
Fully qualified chartered accountant
Run by an ICAEW Chartered Accountant (ACA), Big Four trained and bound by the ICAEW Code of Ethics and CPD requirements. We hold professional indemnity insurance in accordance with ICAEW's PII Regulations.
FreeAgent included — often at no extra cost
Most contractors already qualify for FreeAgent completely free through business banking partners (NatWest, Royal Bank of Scotland, Mettle, and others). We use FreeAgent as our core platform, so in most cases there's nothing extra to pay for software — we simply connect as your accountant and work directly in your books.
Fixed fees, clearly scoped
One monthly fee covers everything listed in your package. The scope is clear from day one — and if something falls outside your plan, we'll tell you upfront before any additional cost is incurred. No billing surprises.
Fast, digital, no faff
Remote-first. Onboarding done digitally. Documents exchanged securely. No unnecessary meetings — we respond promptly and handle things without you needing to chase.
Pricing
Three fixed monthly packages.
Clear scope from day one.
From £95/month. Each package clearly sets out what's included — and if anything falls outside your plan, you'll always be told in advance.
Essentials
For contractors just starting out or with straightforward needs
£95 / month
- Annual accounts & CT600
- Confirmation statement filing
- Director self-assessment return
- FreeAgent bookkeeping review
- Email support
Most Popular
Standard
Full compliance plus proactive tax efficiency guidance
£155 / month
- Everything in Essentials
- Quarterly salary/dividend review
- VAT returns (standard or Flat Rate)
- Director payroll & RTI submissions
- IR35 status awareness review
- Priority email & response SLA
Premium
For higher-earning contractors wanting maximum tax efficiency
£250 / month
- Everything in Standard
- Annual tax planning meeting
- Pension contribution modelling
- Spouse shareholding structure review
- £100k income trap planning
- Same-day response SLA
Fees will be subject to VAT once the practice is VAT-registered. Some services fall outside the standard packages (e.g. one-off advisory work). These are always quoted in advance — no surprises.
Process
How it works
Simple, digital, and structured from day one.
1
Get in touch
Book a free discovery call or drop us an email. We'll usually come back to you within one business day.
2
Free 30-minute discovery call
A no-obligation call to understand your situation, answer your questions, and confirm which package is right for you. No hard sell.
3
Onboarding & handover
Sign your engagement letter, complete ID checks, authorise HMRC access. We handle the transition — including contacting your previous accountant if needed.
4
We get to work
FreeAgent connected, compliance calendar set up, initial review completed. You'll know exactly where you stand from the first week.
Know another contractor who needs a proper accountant?
Refer a fellow contractor: when they join, they get 50% off their first month and we credit a month's fee to your account. Simple, fair, and clearly explained.
See how the referral scheme works →Free Guides
Contractor tax, explained clearly
Practical guides written by an ICAEW qualified chartered accountant — no jargon, no upselling. Just the things you actually need to know.
IR35 Explained: Chapter 8 vs Chapter 10 — What Every Contractor Must Know
IR35 is not one law, it's two. Understanding which chapter applies to your contract could mean the difference between thousands of pounds inside or outside.
Read guideShould You Register for VAT as a Contractor? Flat Rate vs Standard Rate Explained
VAT registration isn't just about the threshold. For many contractors, voluntary registration and the right VAT scheme saves thousands each year. Here's how to decide.
Read guide