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 2017/18 or 2018/19 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, 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 (£11,000 during 2016/17, £11,500 during 2017/18) 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.
- 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.