Salary vs Dividends — Director Pay
Salary vs dividends — which is more tax-efficient in 2026/27?
Combined company + personal tax compared after the April 2026 rise.
A small-salary-plus-dividends mix is still usually more tax-efficient than taking everything as salary — but the April 2026 dividend tax rise narrowed the gap. For a typical director on around £50,000, salary+dividends saves roughly £3,000 vs all-salary. After April 2026, **employer pension contributions** are often the most efficient route of all — no NI, no dividend tax, deductible against corporation tax. **Read the full comparison at [rraccountants.uk/salary-vs-dividends-efficiency](https://rraccountants.uk/salary-vs-dividends-efficiency).**
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