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A dividend is a payment made by a company to its shareholders, the payment being a share of the company's profits.

Tax is paid on dividends, from the 6th of April 2016 the way this tax is calculated is changing.

The annual gross amount of income determines the tax rate, see table below the calculator.

Note - the currency for the calculations below is pounds sterling

Calculations can be saved to a table by clicking the "Add to Table" button.

(The table appears the first time the button is clicked)

There is also the option to create a PDF document

Dividends Calculator
Dividend Amount The value of dividends received
Income Tax Band Either select the tax band from the drop down list or enter your income in the box below
Income Before Tax (Gross) Annual Gross Pay before deductions
Description Current from 6/4/2016 Comments
Dividend Tax Rate (%) 0% 7.5% Dividend tax rate based on your income band
Taxable Amount Taxable amount (from 6/4/2016 first 5,000 tax free)
Dividend Tax due Tax due based on the taxable amount and rate
Amount after tax deduction Nett amount after tax is deducted
Income Bands and Tax Rates
Income Band (Annual Income) Current Rate Rate from 6/4/2016 (first 5,000 tax free)
Basic Rate (up to 31,785) 0 % 7.5 %
Higher Rate (31,786 up to 150,000) 25 % 32.5 %
Additional Rate (over 150,000) 30.56 % 38.1 %

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