Use this calculator below, provided by specialist contractor accountants, Intouch, to work out any additional dividend tax you will have to pay during the 2015/16 and 2016/17 tax years.
Most small companies will pay more tax as a result of the dividend tax hike which comes into force on April 6th 2016.
Further Information / Assumptions
- This calculator will work out the tax payable on any dividends you receive during the 2015/16 or 2016/17 tax years.
- The way dividends are taxed will change significantly from April 2016 – these changes have been incorporated into this calculator.
- Due to these dividend tax changes, in 2016/17 we now ask for the gross dividend to be input (because there is no longer any tax credit) and therefore the net dividend figure is irrelevant.
- You receive the full personal allowance for the year in question (£10,600 during 2015/16, £11,000 during 2016/17), unless you receive £100,000 or more, where your personal allowance is reduced by £1 for every £2 you received over this limit.
- Any restricted allowances, to the extent the restriction applies to the salary is reflected in PAYE and the total liability.
- You were employed throughout the year and this is your only employed income.
- No benefits in kind or other non-employment income have been received during the year.
- For 2016/17, we ask whether a company has 2 or more employees so that we know whether they qualify for the £3,000 Employers’ NI Allowance.
Thanks to Intouch for their help in creating this calculator.