Salary vs Dividends 2026/27 — how to pay yourself from your Ltd
After the April 2026 dividend rate rise (10.75%/35.75%), the optimal director-pay split has shifted. Pillar plus six spokes covering rates, salary level, dividend ceiling, efficiency comparison, legality, and pensions/spouses.
About this hub
This SmartBooks resource hub brings together plain-English guides on salary vs dividends — director pay for UK accountancy firms, landlords, sole traders and small businesses. Each guide answers one question directly, so you can read only what you need.
There are 7 guides in this hub, listed below with a short summary of each. The hub is kept current as HMRC rules change. To see how SmartBooks supports this work, start free or book a 15-minute demo.
Guides in this hub
Salary vs dividends: how to pay yourself from your Ltd in 2026/27
Pillar guide to director pay after the April 2026 dividend rate rise.
Read the guideHow are UK dividends taxed in 2026/27?
The 2026/27 dividend rates, allowance, and top-slice mechanic.
Read the guideThe optimal director salary for 2026/27 — £5,000 or £12,570?
Two common optimal director salaries and which is right for your company.
Read the guideHow much should you take as dividends?
The bands to plan around — £50,270 ceiling, £100k 60% trap, distributable profit rule.
Read the guideSalary vs dividends — which is more tax-efficient in 2026/27?
Combined company + personal tax compared after the April 2026 rise.
Read the guideTaking dividends legally — the rules and paperwork
Distributable profit, minutes, vouchers, records, reporting. The 5-step paperwork checklist.
Read the guideBeyond salary and dividends — pensions, spouses, the bigger picture
The advanced toolkit — employer pensions, spouse shareholdings, the 60% trap, HICBC.
Read the guide
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