If you’re a limited company director or shareholder, dividends are a common way of paying yourself alongside a salary. While dividends can be more tax-efficient than taking only a salary, they are still subject to tax once you pass certain thresholds.
Our UK Dividend Tax Calculator makes it simple to work out:
This helps you plan your finances better, avoid surprises, and understand the true impact of salary versus dividends in the 2025/26 tax year.
Every individual gets a tax-free Dividend Allowance of £500 in 2025/26.
Dividends above this allowance are taxed at different rates depending on your income tax band:
Dividends are taxed after your salary, so your salary income pushes dividends into the correct tax band.
Working out dividend tax by hand can be confusing, especially when you factor in National Insurance and salary tax. This calculator does all the work for you, breaking down tax on salary, dividend tax, employee NIC, employer NIC, and your final take-home pay.
It’s particularly useful for:
By using this tool, you’ll know exactly how much you can take home and how much goes to HMRC, giving you confidence to manage your income more effectively.
This Dividend Tax Calculator is for illustrative purposes only and should not be considered tax advice. Dividend tax liabilities depend on HMRC thresholds, allowances, and your personal financial position.
We advise consulting with a tax professional before making decisions on dividend withdrawals or tax planning.
Copyrights © 2025. All Rights Reserved by UK Startup Magazine
