Dividends and salary are not just two tax rates on the same pound. They come out of completely different pots. Salary is paid before Corporation Tax. It reduces your company's profit, and the company gets relief on it. A dividend is paid from what's left after Corporation Tax has already been settled. The company pays 19% or 25% first. Then you pay dividend tax on what you take. That's the part most directors only spot after the year-end, when the numbers don't match what they expected. A few things worth knowing before you set your pay for 2026/27: - Dividends can only be paid from retained profits, not turnover - Corporation Tax is settled first, your personal dividend tax comes second - The dividend allowance is now £500, down from where it sat a few years ago - Salary at the right level still protects your State Pension record - The mix matters more than the headline rate on either one Plan the split at the start of the year, not when you're signing off the accounts. Our full dividends guide is on 360accounts.net if you want the 2026/27 rates and thresholds in one place. #wokingaccountant #surreyaccountant #surreybusiness #surrey #surreylife - @360.accounts