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Dividend Tax Calculator

From 06 April 2018, a reduced tax-free allowance will apply to dividend income. Almost all company owners will pay more tax as a result of the change. This calculator will help you to understand how you may be affected.

Call 0161 703 2549 or email info@championcontractors.co.uk

From 06 April 2018, a reduced tax-free allowance will apply to dividend income.

The previous £5,000 dividend tax-free allowance has now been reduced to £2,000.

New dividend tax rates are as follows:

  • 0% on first £2,000 of dividend income
  • 7.5% on dividend income within the basic rate band
  • 32.5% on dividend income within the higher rate tax band
  • 38.1% on dividend income within the additional rate band

Almost all company owners will pay more tax as a result of the new tax free threshold.

To help you to understand how you may be affected, Champion have designed this calculator to confirm how much extra tax you could be liable to pay in 2018/19:

View results below:

2017/18

Dividend Tax

£

PAYE Income tax

£

Employees NIC

£

Employers NIC

£

Total Income tax & NIC

£

2018/19

Dividend Tax

£

PAYE Income tax

£

Employees NIC

£

Employers NIC

£

Total Income tax & NIC

£


Difference: £


Important Information

If you make an input error, please refresh the page and start again.

We have used the following personal allowances (income you can earn before paying Income Tax) in this calculator:

  • £11,850 for 2018/19 (Tax Code = 1185L)
  • £11,500 for 2017/18 (Tax Code = 1150L)

Your personal allowance will reduce if your total income exceeds £100,000 by £1 for every £2 you earned above the threshold. It is completely lost when £123,000 (2017/18) and £123,700 (2018/19) is earned.

This calculator is for information only – please contact a Champion Advisor if bespoke guidance is required.