You will typically receive the full personal allowance for the year in question unless you receive £100,000 or more. After this threshold, your allowance is reduced by £1 for every £2 you receive over this limit.
We assume that you were employed throughout the year, and this is your only source of income.
No benefits in kind or other non-employment income have been received during the year.
The dividend allowance is £500. The first £500 of dividends are tax-free, although the allowance still uses up £500 of the basic rate tax band.
The Employment Allowance has been ignored as single-director companies are ineligible. The Employers’ NI amount will be refunded if your company is eligible.
The income tax rates and bands used apply to the whole of the UK, except Scotland, which has separate rates.
Although our accountants have validated this calculator, please discuss your tax affairs with your own accountant before making a dividend declaration.
