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Income Shifting Calculator

Calculate how the ‘income shifting’ Section 624 legislation could impact your finances

Find out how the potential ‘income shifting’ legislation (S624 ITTOIA 2005, formerly S660) could affect your finances should the Government decide to resurrect plans to apply the rules to family owned businesses.

‘Income shifting’ is when ownership of a company is split between spouses to use a non-working spouse’s tax allowances. A previous Government proposed draft legislation on income shifting, but it was never implemented following the Arctic Systems case.

Use this calculator to determine your tax liability, based on your rate and your dividend split, should the legislation come into effect.

Please enter your details to find out:

Basic Calculation >
Rate: £
Rate type:  
   
IR35 status:  
  
Hours per week:  
Days worked per week:  
Weeks per year:  
Annual expenses: £
Gross salary drawn as Director: £ (excl Employers NI Employees NI)
Annual pension contributions: £
Other annual income: £
I split the dividend and receive    percent.
Personal tax code:  
    (Single person code 1250L- Budget 2020)
Tax year: