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.
Please enter your SALARY and DIVIDEND amounts into the yellow boxes below, and the calculator will work out how much tax you will have to pay for the 2017-18 tax year. Please scroll down to read some important assumptions we have made.
For background information, read what are dividends are how are they taxed?
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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.
- 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.