About Dividend Calculator UK
Dividend Calculator UK is a free tool for limited company directors who want to understand the tax implications of taking dividends versus salary. We built it because the interaction between Corporation Tax, dividend tax, and National Insurance confuses most people, and getting it wrong costs real money.
How we calculate
Our calculator uses HMRC's published rates for 2026/27. It models Corporation Tax at the appropriate rate (19% small profits, 25% main rate, marginal relief in between), then calculates personal dividend tax using the £500 allowance and three dividend tax bands. We factor in employer NI on salary, the personal allowance, and the interaction between salary and dividend tax bands.
The optimiser function runs through different salary levels (from £0 to your full profit) and finds the combination that minimises total tax paid (Corporation Tax + employer NI + Income Tax + dividend tax combined).
Our sources
- Dividend tax rates: HMRC Income Tax rates and allowances for 2026/27
- Corporation Tax rates: HMRC CT rates for financial year 2026
- NI thresholds: HMRC National Insurance rates and thresholds 2026/27
- Marginal relief formula: HMRC Corporation Tax marginal relief calculator
Limitations
We assume a single director with no other income sources. If you have rental income, investment gains, or employment income elsewhere, the tax position changes. We also don't model the impact of pension contributions, Gift Aid, or tax credits. For complex situations, speak to a chartered accountant.
Who runs this site
Dividend Calculator UK is operated by Quicksolve Digital Ltd, a company registered in England and Wales (Company No. 17385486). We build free financial calculator tools for UK consumers and business owners.
Contact
For corrections, data queries, or partnership enquiries: hello@dividendcalculator.uk