Salary/Dividend Optimizer
Find the optimal balance between tax efficiency and mortgage borrowing capacity.
Your Company Financials
Most directors take £12,570
How much you want to take as dividends
Scenario Comparison
Tax Efficient
Lower dividends, more retained in company
Dividends
£20,000
Retained
£47,430
Potential Borrowing
£146,565
Total Tax
£14,779
Balanced
Moderate dividend extraction
Dividends
£40,000
Retained
£27,430
Potential Borrowing
£236,565
Total Tax
£16,979
Mortgage Maximized
Maximum dividend extraction
Dividends
£67,430
Retained
£0
Potential Borrowing
£360,000
Total Tax
£26,237
Net Profit Lender
Using lenders that consider share of net profit
Dividends
£20,000
Retained
£47,430
Potential Borrowing
£299,313
Total Tax
£14,779
Key Insight
The difference between tax-efficient and mortgage-maximized approaches is:
Extra borrowing potential
£213,435
Additional tax cost
£11,458
That's £19 extra borrowing for every £1 extra tax paid.
Simplified Calculations
These figures are illustrative. Actual tax calculations depend on many factors including personal allowance tapering, employer NIC, and your specific circumstances. Consult your accountant for precise figures.