Use our Dividend Tax Calculator to calculate your tax liability based on your salary, dividends and other factors for the respective tax year, i.e. 2023/24. Get calculations for tax year 2022-23, and 2023-24.
Accuracy of tax calculators is critical, and automated calculators rarely produce accurate results. This is why when you submit your financial details on our tax calculator, a Contractor Accountant / Tax specialist will personally work on your details to provide you accurate results, as per your financial situation. We will send you your tax results via email, which you can download and save it for future use.
Also read: What does the new dividend tax rise mean for everyone?
| Income Tax Bracket | Income Range | Dividend Tax Rate |
|---|---|---|
| Personal allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 8.75% |
| Higher rate | £50,271 – £125,139 | 33.75% |
| Additional rate | Over £125,140 | 39.35% |
It is also important to note that the dividend allowance is now £1,000. This has been reduced by £1,000. During the year 2022-23, it was £2,000. The tax-free dividend allowance has shrunk significantly from £5,000 when it was first introduced in 2016 to now £1,000.
The decrease in allowance results in increased tax liability, especially to those who rely on income through dividends. On the positive side, it is also worth noting that you don't have to pay National Insurance Contributions (NIC) on dividend payments.
How to use our Dividend Tax Calculator
1. Select your personal tax code. For the year 2023/24 it is 1257L
2. Enter your gross salary
3. Enter gross dividends
4. Enter other annual income (only if applicable, else leave it blank)
5. Select Yes, if you have more than 2 employees working for your limited company; else select No
6. Enter Name and Email address
7. Leave us comments if you want us to consider any additional thing, or if you want any guidance etc.
8. Click Submit
Once you submit your details to us, our Accountant / Tax specialist will calculate your income tax payable on your dividends and email you the results. Again, this service is absolutely free and there's no obligation whatsoever.
If you are looking for a contractor accountant or any tax related assistance then, you may want to look at our Top Contractor Accountants or you can also have a look at our Best Umbrella Companies. Alternatively, you can email us on [email protected], and we'll be more than happy to help.
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