Salary vs Dividends — Director Pay
How much should you take as dividends?
The bands to plan around — £50,270 ceiling, £100k 60% trap, distributable profit rule.
With a £12,570 salary you can take up to about £37,700 in dividends before total income reaches £50,270 — the top of the basic rate band, where dividend tax jumps from 10.75% to 35.75%. Two key thresholds: **£50,270** basic-rate ceiling, and **£100,000** where the personal allowance tapers, creating a ~60% effective rate on income £100k–£125,140. Dividends can only be paid from genuine distributable profit after corporation tax. **Read the full guide at [rraccountants.uk/how-much-dividends-to-take](https://rraccountants.uk/how-much-dividends-to-take).**
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