If you are a limited company shareholder, you may have extra tax to pay on dividends you receive during the 2019/20 tax year. Use our dividend calculator to work out your tax liability.
Simply click on the yellow boxes to enter your planned salary and dividend figures for the 19/20 tax year, which started on 6th April.
Please check below for some important notes.
Dividend Calculator Notes
- To keep the calculator as simple as possible, you cannot add any additional sources of income (e.g. rental or savings). Talk to your accountant if you need a more complex calculation. You can compare 40+ specialist accountants right here.
- You can use the 2018-19 dividend tax calculator here.
- The dividend tax rates for the 2018-19 tax year remain at 7.5% (basic), 32.5% (higher) and 38.1% (additional). See the table below.
|Tax Band||2018/19 Income||2019/20 Income||Tax Rate|
|Basic||£0 – £34,500||£0 – £37,500||7.5%|
|Higher||£34,501 – £150,000||£37,501 – £150,000||32.5%|
|Additional||£150,000 +||£150,000 +||38.1%|
- All taxpayers are granted a tax-free personal allowance, which is £12,500 for the 2019/20 tax year (tax code = 1250L). We have assumed you are entitled to the full allowance in our calculations. The tax bands above are applied after your personal allowance has been used up.
- If you earn over £100,000, the value of the personal allowance is cut by £1 for every £2 you earn above this threshold.
- Thanks to the dividend allowance, there is no tax to pay on the first £2,000 of dividends (this is why the ‘total taxable income’ on the calculator reduces your liability by this amount). Importantly, the dividend allowance sits within your existing income tax bands when it comes to working out your overall tax liability.
- We have assumed, for simplicity, that your limited company is not eligible to claim the employment allowance. If your business is eligible, then it will not have to pay the Employers’ NIC liability in the calculation above.
- Different income tax bands and rates apply if you live in Scotland, so your total tax bill may be different to that displayed above.
- Our accountants have created this spreadsheet for us all to use. However, you should talk to your own accountant before making any decisions based on the calculations provided.