When a payment is made by a company to its shareholders, the payment that has been made is a share of the company's profits.
Starting from the 6th of April in 2016, the way in which tax is calculated in order to pay tax on dividends, is being changed.
See the table below the calculator in order to see how annual gross amounts of income determine which tax rate applies.
Note that the currency for all of the calculations that you make below are calculated in pounds sterling.
Updated April 2018: From 6 April 2018 the Dividend Allowance reduced from £5,000 to £2,000.
| Income Bands and Tax Rates | ||
|---|---|---|
| Income Band (Annual Income) | Current Rate (first £2,000 tax free) | Rate before 06/04/2016 |
| Additional Rate (over 150,000) | 38.1 % | 30.56 % |
| Higher Rate (37,501 up to 150,000) | 32.5 % | 25 % |
| Basic Rate (up to 37,500) | 7.5 % | 0 % |
You may also like to try our other tax calculators:
- - Capital Gains Tax Calculator
- - Corporation Tax Calculator
When a payment is made by a company to its shareholders, the payment that has been made is a share of the company's profits.
Starting from the 6th of April in 2016, the way in which tax is calculated in order to pay tax on dividends, is being changed.
See the table below the calculator in order to see how annual gross amounts of income determine which tax rate applies.
Note that the currency for all of the calculations that you make below are calculated in pounds sterling.
Updated April 2018: From 6 April 2018 the Dividend Allowance reduced from £5,000 to £2,000.
| Income Bands and Tax Rates | ||
|---|---|---|
| Income Band (Annual Income) | Current Rate (first £2,000 tax free) | Rate before 06/04/2016 |
| Additional Rate (over 150,000) | 38.1 % | 30.56 % |
| Higher Rate (37,501 up to 150,000) | 32.5 % | 25 % |
| Basic Rate (up to 37,500) | 7.5 % | 0 % |
You may also like to try our other tax calculators:
- - Capital Gains Tax Calculator
- - Corporation Tax Calculator