Last Updated on 01/12/2025
Increase in dividend tax from April 2026
One of the significant tax increases announced in the Autumn budget, is the increase in dividend tax from April 2026. This impacts self-employed individuals working through a limited company, increasing the tax they pay on dividend income. Someone earning £50,000 as a company director, paying themselves a salary of £12,570 and dividends of £37,430 will pay an additional £739 in tax from April 2026. Our tax calculator for company directors from April 2026 lets self-employed individuals working through a limited company assess the impact of the tax increases on their income.
From April 2026, tax on dividends for basic rate taxpayers is increasing by 2% from 8.75% to 10.75%. The higher tax rate for dividends is increasing from 33.75% to 35.75%, while the additional tax band rate for dividends remains 39.35%. The annual dividend allowance is £500 for all taxpayers, letting you earn this amount in dividend income tax-free.
The calculator below has been updated for the dividend tax rate changes from April 2026, enabling you to assess the impact of the changes on your income.
Tax calculator for company directors from April 2026
Limited Company Director Tax Calculator
Calculate tax and National Insurance on director salary and dividends (salary up to £50,270, combined income up to £100,000)
PAYE Tax:
£0.00Employee’s NIC paid by director:
£0.00Employer’s NIC paid by company:
£0.00Dividend Tax:
£0.00Total Tax & National Insurance:
£0.00Net Salary (after tax & NI):
£0.00Net Dividends (after tax):
£0.00Total Take Home:
£0.00Disclaimer:
This calculator provides estimates for general informational purposes only and is not a substitute for professional tax advice. The calculations are based on generalised assumptions and may not reflect your specific tax situation.
Tax laws and regulations change frequently. We do not guarantee the accuracy, completeness, or timeliness of the information provided. Results generated should be verified with a qualified tax professional before making financial decisions.
