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Dividend Tax rules change 2016 – dividend lookup table for at-a-glance tax increases

Dividend Taxes change in 2016 and limited company contractors will be subject to new taxes that will take effect from dividend income that is as low as £10,000.

You can use the table below to tell at-a-glance how much extra tax you will pay on your dividend. Simply find your dividend in the ‘Dividend’ column, and then check right in the ‘Dividend Tax 2015/2016’ column to see how much tax you need to pay. The next column along tells you how much extra tax you will pay in the 2016/2017 tax year compared to what you are paying now.

To find out exactly how much extra dividend tax you will pay from 6 April 2016 as a result of the new rules, you can use our Dividend Tax Changes Impact Calculator. The calculator will use your exact dividend figures to work out your additional tax liability.

NOTE - 20th August 2015: These calculations have been updated based on the HMRC factsheet released on 17th August 2015. Contrary to experts opinion after the Summer Budget the Dividend Tax Allowance isn't actually an allowance in the normally used sense - instead it is a zero-rate tax band and counts towards income when calculating your total taxable income. The first £5000 is taxed at 0% and then the marginal rate is used for the associated tax bracket. For more information see HMRC clarification of Dividend Tax changes will cost most contractors another £1250.

In the table below, locate either your gross profit or net dividend to determine the impact the new dividend rules will have on you. For family owned businesses or for contractors who split dividends with their spouses each persons extra tax needs to be considered.

Gross profit(£) Dividend(£) Dividend Tax 2015/2016(£) Dividend Tax 2016/2017(£) Change(£) Percentage rise (%)
12,500 10,000 - 155 155 -
15,625 12,500 - 342 342 -
18,750 15,000 - 530 530 -
21,875 17,500 - 717 717 -
25,000 20,000 - 905 905 -
28,125 22,500 - 1,092 1,092 -
31,250 25,000 - 1,280 1,280 -
34,375 27,500 - 1,467 1,467 -
37,500 30,000 - 1,655 1,655 -
40,625 32,500 402 1,842 1,440 4.4
43,750 35,000 1,027 2,045 1,018 2.9
46,875 37,500 1,652 2,857 1,205 3.2
50,000 40,000 2,277 3,670 1,393 3.5
53,125 42,500 2,902 4,482 1,580 3.7
56,250 45,000 3,527 5,295 1,768 3.9
59,375 47,500 4,152 6,107 1,955 4.1
62,500 50,000 4,777 6,920 2,143 4.3
65,625 52,500 5,402 7,732 2,330 4.4
68,750 55,000 6,027 8,545 2,518 4.6
71,875 57,500 6,652 9,357 2,705 4.7
75,000 60,000 7,277 10,170 2,893 4.8
78,125 62,500 7,902 10,982 3,080 4.9
81,250 65,000 8,527 11,795 3,268 5.0
84,375 67,500 9,152 12,607 3,455 5.1
87,500 70,000 9,777 13,420 3,643 5.2
90,625 72,500 10,402 14,232 3,830 5.3
93,750 75,000 11,027 15,045 4,018 5.4
96,875 77,500 11,652 15,857 4,205 5.4
100,000 80,000 12,277 16,670 4,393 5.5
103,125 82,500 12,902 17,482 4,580 5.6
106,250 85,000 13,527 18,295 4,768 5.6
109,375 87,500 14,152 19,107 4,955 5.7
112,500 90,000 14,777 19,920 5,143 5.7
115,625 92,500 15,402 20,732 5,330 5.8
118,750 95,000 16,027 21,545 5,518 5.8
121,875 97,500 16,652 22,357 5,705 5.9
125,000 100,000 17,277 23,170 5,893 5.9
128,125 102,500 17,902 23,982 6,080 5.9
131,250 105,000 18,527 24,795 6,268 6.0
134,375 107,500 19,152 25,607 6,455 6.0
137,500 110,000 19,777 26,420 6,643 6.0
140,625 112,500 20,402 27,232 6,830 6.1
143,750 115,000 21,027 28,045 7,018 6.1
146,875 117,500 21,652 28,857 7,205 6.1
150,000 120,000 22,277 29,670 7,393 6.2
153,125 122,500 22,902 30,482 7,580 6.2
156,250 125,000 23,527 31,295 7,768 6.2
159,375 127,500 24,152 32,107 7,955 6.2
162,500 130,000 24,777 32,920 8,143 6.3
165,625 132,500 25,402 33,732 8,330 6.3
168,750 135,000 26,027 34,545 8,518 6.3
171,875 137,500 26,664 35,357 8,693 6.3
175,000 140,000 27,428 36,170 8,742 6.2
178,125 142,500 28,192 36,982 8,790 6.2
181,250 145,000 28,955 37,795 8,839 6.1
184,375 147,500 29,719 38,607 8,888 6.0
187,500 150,000 30,483 39,420 8,936 6.0
190,625 152,500 31,247 40,232 8,985 5.9
193,750 155,000 32,011 41,160 9,149 5.9
196,875 157,500 32,775 42,112 9,337 5.9
200,000 160,000 33,539 43,065 9,526 6.0
203,125 162,500 34,303 44,017 9,715 6.0
206,250 165,000 35,067 44,970 9,903 6.0
209,375 167,500 35,830 45,922 10,092 6.0
212,500 170,000 36,594 46,875 10,281 6.0
215,625 172,500 37,358 47,827 10,469 6.1
218,750 175,000 38,122 48,780 10,658 6.1
221,875 177,500 38,886 49,732 10,846 6.1
225,000 180,000 39,650 50,685 11,035 6.1
228,125 182,500 40,414 51,637 11,224 6.1
231,250 185,000 41,178 52,590 11,412 6.2
234,375 187,500 41,942 53,542 11,601 6.2
237,500 190,000 42,705 54,495 11,789 6.2
240,625 192,500 43,469 55,447 11,978 6.2
243,750 195,000 44,233 56,400 12,167 6.2
246,875 197,500 44,997 57,352 12,355 6.3
250,000 200,000 45,761 58,305 12,544 6.3

A few assumptions have been made in these calcuations:

  • The Dividend Tax Allowance is NOT a tax-free allowance and treated as a zero rate band. The first £5,000 of dividends are taxed at 0%, and then the associated marginal rate is used.
  • Your salary is set at the current optimal of £8060 per year
  • You have no other income (if you do then use our impact calculator to include those)

Published: 20 August 2015

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