Dividend tax calculator 2026/27

Any income outside this company, such as another job, a pension or rent from a property. HMRC taxes it alongside your salary, before your dividends, so it uses up allowance and basic rate band and can push your dividends into a higher band. Leave at 0 if none.

Enter the amount paid in this year and choose below how it is paid. Contributions you pay personally get 20% added by the provider and extend your basic rate band, so more of your dividends stay at 10.75%. Contributions paid straight from the company into your SIPP do not change your personal tax at all, but they save the company Corporation Tax, and the calculator will show you that instead.

Relief at source (most personal pensions and SIPPs): you pay from your own bank, the provider adds 20%, and higher rate relief comes through your tax return by extending your basic rate band. Enter the amount that leaves your bank. Net pay (most workplace schemes): the contribution comes off your salary before tax is worked out, so relief is immediate and there is no band extension. Enter the amount shown on your payslip. Employer contribution (paid by the company directly into your SIPP): the company pays the gross amount; there is no National Insurance and nothing on your personal tax return, and it reduces the company's profit before Corporation Tax. Enter the amount the company pays. For a director this is usually the most efficient of the three. If you are not sure which you have, your pension provider's welcome letter or your payslip will say.

Dividends count as income for student loan repayments once your unearned income is over £2,000 in the year. HMRC then charges 9% (6% for a Postgraduate Loan) of everything above your plan's threshold, on your total income, through Self Assessment. Because a director's £12,570 salary is below every threshold, nothing is taken through payroll, so the whole repayment lands in the January bill. Repayments are not included in payments on account.

Dividends count towards the income test for the High Income Child Benefit Charge. Above £60,000 of total income some Child Benefit is clawed back through your tax return, all of it by £80,000. Only the higher earner in a couple is counted.

Dividends are taxed at the same UK rates everywhere, but Scottish rates apply to your salary and other income, which can change where your dividends sit. Choose Scotland if your tax code starts with an S.