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 guidePlain-English guides to the topics every UK limited company contractor needs to understand, written by an ICAEW chartered accountant. No jargon, no upselling.
Quick reference: 2026/27 Tax Rates · Jargon Buster
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 guideWhen you have to register, when voluntary registration is worth it, and why the limited cost trader test makes standard rate the better default for most contractors.
Read guideIncome tax, National Insurance, dividend and corporation tax, VAT thresholds, CGT and the pension annual allowance: the key 2026/27 figures in one place.
View ratesThese guides cover the general principles, but every contractor's position is different. Book a free discovery call and we'll talk through yours.
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