Salary vs Dividends — Director Pay
The optimal director salary for 2026/27 — £5,000 or £12,570?
Two common optimal director salaries and which is right for your company.
Two common "optimal" director salaries: **£5,000** (zero NI, best for single-director companies without Employment Allowance) or **£12,570** (uses personal allowance, triggers £1,135.50 employer NI but saves more in corporation tax — and effectively wiped if Employment Allowance £10,500 applies). Both count as a qualifying State Pension year. **Read the full guide at [rraccountants.uk/optimal-director-salary-uk](https://rraccountants.uk/optimal-director-salary-uk).**
Resources
Bring your next MTD submission to SmartBooks.
Create a SmartBooks workspace now, or book a demo if you want to walk through the workflow with the team first.