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Dividend Calculator – How much tax will you pay?

Use our salary and dividends calculator to work out how much additional tax you will have to pay on dividends drawn down from your limited company.

All calculations have been verified by our colleagues at Intouch Accounting.

The way dividends are taxed changed significantly from 6th April 2016 onwards. These changes have been incorporated into the calculations.

Further Information / Assumptions

  • This calculator will work out the tax payable on any dividends you receive during the 2017/18 tax year.
  • You will typically receive the full personal allowance for the year in question (£11,000 during 2016/17, £11,500 during 2017/18), unless you receive £100,000 or more, where your personal allowance is reduced by £1 for every £2 you received over this limit.
  • Any restricted allowances, to the extent the restriction applies to the salary is reflected in PAYE and the total liability.
  • You were employed throughout the year and this is your only employed income.
  • No benefits in kind or other non-employment income have been received during the year.
  • The Employers Allowance is taken into account in the Employers NI calculation
  • The calculator asks if you have two or more employees, to determine whether or not your qualify for the Employment Allowance.

Thanks to InTouch for their help in creating this calculator. InTouchCalc

Last updated: 1st November 2017