This calculator will work out your total personal tax liability based on the amount of salary and dividends you received during the 2017/18 tax year.
Simply enter your SALARY and DIVIDEND below, and the calculator will work out how much tax you will have to pay for the 2017-18 tax year.
- You can access the 2018-19 calculator here.
- Scroll down to read some important assumptions we have made.
- Read what are dividends are how are they taxed?
- Keep up-to-date with any future tax changes by subscribing to our free newsletter list, and we’ll also send you 20 tax saving tips.
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Notes and Assumptions
- This calculator has been prepared by our own accountants. The tool has been thoroughly tested, but you should use the results as a guide only.
- Click on the cross icons to delete the replace the current salary and dividend amounts.
- You can access the 2018-19 dividend calculator here.
- To work out your dividend tax liability for the previous year, use our 2016-17 dividend tax calculator.
- For the 2017/18 tax year, the personal allowance is £11,500 (no tax is payable on income up to this amount) – tax code is 1150L. Last year it was £11,000.
- If you earn over £100,000 during the tax year, your personal allowance is eroded by £1 for every £2 you earn above this threshold. So, the personal allowance is completely removed if your total income is £123,000 or more.
- There is a dividend allowance – a nil rate band – on your first £5,000 of dividend income. However, this allowance does sit within your existing tax bands for the purpose of working out your overall tax liability. This allowance will be reduced to a mere £2,000 from April 2018.
- The current rates of dividend tax (for 2017/18) are 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate).
- There are many possible variables when calculating your total income tax liability. To keep our calculator simple, we have assumed the taxpayer has no other income during the tax year.
- We have also excluded the Employment Allowance from the calculations. If your company is eligible, it can reclaim Employers’ NICs up to a value of £3,000 this year.
- If you need a precise calculation, based on your own finances, please ask your accountant. If you’re looking for a new accountant, try our popular fees comparison table.