{"id":39201,"date":"2026-07-01T11:24:09","date_gmt":"2026-07-01T10:24:09","guid":{"rendered":"https:\/\/figsflow.com\/uk\/?p=39201"},"modified":"2026-07-16T08:04:56","modified_gmt":"2026-07-16T07:04:56","slug":"dividend-tax-rates-2026-27","status":"publish","type":"post","link":"https:\/\/figsflow.com\/uk\/dividend-tax-rates-2026-27\/","title":{"rendered":"Dividend Tax Rates &amp; Allowance 2026\/27: The Accountant\u2019s Quick-Reference Guide\u00a0"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"39201\" class=\"elementor elementor-39201\" data-elementor-settings=\"{&quot;element_pack_global_tooltip_width&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_width_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;size&quot;:&quot;&quot;,&quot;sizes&quot;:[]},&quot;element_pack_global_tooltip_padding&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_padding_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_tablet&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true},&quot;element_pack_global_tooltip_border_radius_mobile&quot;:{&quot;unit&quot;:&quot;px&quot;,&quot;top&quot;:&quot;&quot;,&quot;right&quot;:&quot;&quot;,&quot;bottom&quot;:&quot;&quot;,&quot;left&quot;:&quot;&quot;,&quot;isLinked&quot;:true}}\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7bccfee e-flex e-con-boxed e-con e-parent\" data-id=\"7bccfee\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-646f6b4 elementor-widget elementor-widget-html\" data-id=\"646f6b4\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"html.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<!-- ============================================================\r\n  PASTE-READY SECTION: H2 + intro copy + calculator + closing copy\r\n  + WebApplication schema. Paste this whole file into ONE\r\n  HTML widget (Elementor) or Custom HTML block (Gutenberg).\r\n  The H2 carries the anchor id \"dividend-tax-calculator\" for the\r\n  table of contents and internal links.\r\n============================================================= -->\r\n<h2 id=\"dividend-tax-calculator\">UK Dividend Tax Calculator 2026\/27<\/h2>\r\n<p>Use this free UK dividend tax calculator to work out the exact 2026\/27 dividend tax position for any client. Enter gross income and the net amounts paid for relief-at-source pension contributions and Gift Aid, plus any qualifying interest payments &mdash; the calculator grosses up reliefs, computes adjusted net income and the tapered Personal Allowance, extends the rate bands where the law allows, and stacks income in the statutory order: non-savings first, then savings, then dividends at 10.75%, 35.75% or 39.35%. The default figures reproduce Priya&rsquo;s worked example above, so you can verify the method before running your own numbers.<\/p>\r\n\r\n<!-- ============================================================\r\n  FigsFlow \u2014 Dividend Tax Calculator 2026\/27 (embeddable block)\r\n  Paste this ENTIRE block into ONE Custom HTML block (Gutenberg)\r\n  or ONE HTML widget (Elementor) inside the blog post.\r\n  No <head>\/<body> needed. No external libraries. Scoped styles.\r\n  Typeface: Source Serif Pro (already loaded by the FigsFlow theme).\r\n  Colours: FigsFlow brand palette from uicore-global.css.\r\n  Rates: 2026\/27, rUK bands. Indicative tool \u2014 not tax advice.\r\n============================================================= -->\r\n<div id=\"ffdc-dividend-calc\">\r\n  <style>\r\n    #ffdc-dividend-calc {\r\n      --ffdc-primary: #012169;   \/* FigsFlow primary navy   *\/\r\n      --ffdc-accent:  #0094B0;   \/* FigsFlow accent teal    *\/\r\n      --ffdc-dark:    #002935;   \/* FigsFlow dark           *\/\r\n      --ffdc-light:   #F2F9FF;   \/* FigsFlow light          *\/\r\n      --ffdc-alert:   #C8102E;   \/* FigsFlow secondary red  *\/\r\n      --ffdc-line:    #d8e2ec;\r\n      box-sizing: border-box;\r\n      max-width: 100%;\r\n      margin: 2rem 0;\r\n      border: 1px solid var(--ffdc-line);\r\n      border-top: 4px solid var(--ffdc-primary);\r\n      border-radius: 10px;\r\n      padding: 1.5rem 1.25rem;\r\n      color: var(--ffdc-dark);\r\n      font-family: \"Source Serif Pro\", Georgia, \"Times New Roman\", serif;\r\n      background: #fff;\r\n    }\r\n    #ffdc-dividend-calc *, #ffdc-dividend-calc *::before, #ffdc-dividend-calc *::after { box-sizing: border-box; }\r\n    #ffdc-dividend-calc .ffdc-title { font-size: 1.35rem; font-weight: 700; margin: 0 0 .25rem; color: var(--ffdc-primary); }\r\n    #ffdc-dividend-calc .ffdc-sub { font-size: .92rem; color: #33505c; margin: 0 0 1.25rem; }\r\n    #ffdc-dividend-calc .ffdc-grid { display: flex; flex-wrap: wrap; gap: 1rem; margin-bottom: 1rem; }\r\n    #ffdc-dividend-calc .ffdc-field { flex: 1 1 180px; min-width: 160px; }\r\n    #ffdc-dividend-calc label { display: block; font-size: .88rem; font-weight: 600; margin-bottom: .3rem; color: var(--ffdc-primary); }\r\n    #ffdc-dividend-calc .ffdc-hint { display: block; font-weight: 400; color: #5a7280; font-size: .78rem; margin-top: .15rem; font-style: italic; }\r\n    #ffdc-dividend-calc .ffdc-gross { display: block; font-size: .78rem; color: var(--ffdc-accent); margin-top: .3rem; font-weight: 600; min-height: 1em; }\r\n    #ffdc-dividend-calc .ffdc-inputwrap { position: relative; }\r\n    #ffdc-dividend-calc .ffdc-inputwrap span {\r\n      position: absolute; left: .7rem; top: 50%; transform: translateY(-50%);\r\n      color: #5a7280; font-size: .95rem; pointer-events: none;\r\n    }\r\n    #ffdc-dividend-calc input[type=\"number\"] {\r\n      width: 100%; padding: .55rem .7rem .55rem 1.6rem;\r\n      border: 1px solid #b7c8d6; border-radius: 6px;\r\n      font-size: 1rem; color: var(--ffdc-dark); background: #fff;\r\n      font-family: inherit;\r\n      -moz-appearance: textfield; appearance: textfield;\r\n    }\r\n    #ffdc-dividend-calc input[type=\"number\"]:focus {\r\n      outline: 2px solid var(--ffdc-accent); outline-offset: 1px; border-color: var(--ffdc-accent);\r\n    }\r\n    #ffdc-dividend-calc .ffdc-sect {\r\n      font-size: .8rem; text-transform: uppercase; letter-spacing: .05em;\r\n      color: #33505c; font-weight: 700; margin: 1.25rem 0 .5rem;\r\n      border-bottom: 1px solid var(--ffdc-line); padding-bottom: .25rem;\r\n    }\r\n    #ffdc-dividend-calc .ffdc-summary { display: flex; flex-wrap: wrap; gap: .75rem; margin: 1.1rem 0 1rem; }\r\n    #ffdc-dividend-calc .ffdc-barwrap { margin: .25rem 0 1.25rem; }\r\n    #ffdc-dividend-calc .ffdc-barcap { font-size: .82rem; font-weight: 700; color: var(--ffdc-primary); margin: 0 0 .35rem; }\r\n    #ffdc-dividend-calc .ffdc-bar {\r\n      display: flex; width: 100%; height: 30px; border-radius: 15px; overflow: hidden;\r\n      border: 1px solid var(--ffdc-line); background: #fbfdff;\r\n    }\r\n    #ffdc-dividend-calc .ffdc-seg { height: 100%; min-width: 3px; transition: width .35s ease; }\r\n    #ffdc-dividend-calc .ffdc-seg + .ffdc-seg { border-left: 1px solid rgba(255,255,255,.65); }\r\n    #ffdc-dividend-calc .ffdc-seg-relief { background: #c2d5ea; }\r\n    #ffdc-dividend-calc .ffdc-seg-pa { background: #dbe7f5; }\r\n    #ffdc-dividend-calc .ffdc-seg-nil {\r\n      background: repeating-linear-gradient(45deg, #e8f1fa, #e8f1fa 6px, #d8e7f6 6px, #d8e7f6 12px);\r\n    }\r\n    #ffdc-dividend-calc .ffdc-seg-b0 { background: var(--ffdc-accent); }\r\n    #ffdc-dividend-calc .ffdc-seg-b1 { background: var(--ffdc-primary); }\r\n    #ffdc-dividend-calc .ffdc-seg-b2 { background: var(--ffdc-alert); }\r\n    #ffdc-dividend-calc .ffdc-legend {\r\n      display: flex; flex-wrap: wrap; gap: .35rem 1rem; margin-top: .45rem;\r\n      font-size: .74rem; color: #33505c; list-style: none; padding: 0;\r\n    }\r\n    #ffdc-dividend-calc .ffdc-legend li { display: flex; align-items: center; gap: .35rem; margin: 0; }\r\n    #ffdc-dividend-calc .ffdc-dot {\r\n      width: 11px; height: 11px; border-radius: 3px; display: inline-block; border: 1px solid rgba(0,41,53,.15);\r\n    }\r\n    #ffdc-dividend-calc .ffdc-stat {\r\n      flex: 1 1 160px; background: var(--ffdc-light); border: 1px solid var(--ffdc-line);\r\n      border-left: 3px solid var(--ffdc-accent); border-radius: 8px; padding: .7rem .85rem;\r\n    }\r\n    #ffdc-dividend-calc .ffdc-stat b { display: block; font-size: 1.3rem; color: var(--ffdc-primary); }\r\n    #ffdc-dividend-calc .ffdc-stat small { color: #33505c; font-size: .78rem; line-height: 1.3; display: block; margin-top: .15rem; }\r\n    #ffdc-dividend-calc table.ffdc-table { width: 100%; border-collapse: collapse; font-size: .92rem; margin: .5rem 0 0; }\r\n    #ffdc-dividend-calc table.ffdc-table caption {\r\n      text-align: left; font-weight: 700; font-size: 1rem; padding: .25rem 0 .5rem; color: var(--ffdc-primary);\r\n    }\r\n    #ffdc-dividend-calc table.ffdc-table th, #ffdc-dividend-calc table.ffdc-table td {\r\n      border-bottom: 1px solid var(--ffdc-line); padding: .45rem .5rem; text-align: right;\r\n    }\r\n    #ffdc-dividend-calc table.ffdc-table th:first-child, #ffdc-dividend-calc table.ffdc-table td:first-child { text-align: left; }\r\n    #ffdc-dividend-calc table.ffdc-table thead th {\r\n      font-size: .78rem; text-transform: uppercase; letter-spacing: .04em; color: #33505c;\r\n    }\r\n    #ffdc-dividend-calc table.ffdc-table tr.ffdc-total td {\r\n      font-weight: 700; border-bottom: none; border-top: 2px solid var(--ffdc-primary); color: var(--ffdc-primary);\r\n    }\r\n    #ffdc-dividend-calc table.ffdc-table tr.ffdc-key td { font-weight: 700; background: var(--ffdc-light); }\r\n    #ffdc-dividend-calc .ffdc-note { font-size: .78rem; color: #5a7280; margin: 1rem 0 0; line-height: 1.55; }\r\n    #ffdc-dividend-calc .ffdc-warn {\r\n      color: var(--ffdc-alert); background: #fdf2f4; border: 1px solid #f2c4cc;\r\n      border-radius: 6px; padding: .5rem .7rem; font-size: .85rem; margin-top: .75rem; display: none;\r\n    }\r\n    #ffdc-dividend-calc .ffdc-tablewrap { overflow-x: auto; -webkit-overflow-scrolling: touch; }\r\n    #ffdc-dividend-calc table.ffdc-stack td:not(:first-child), #ffdc-dividend-calc table.ffdc-stack th:not(:first-child) { white-space: nowrap; }\r\n    #ffdc-dividend-calc table.ffdc-table td:first-child { overflow-wrap: anywhere; }\r\n    #ffdc-dividend-calc table.ffdc-table td { white-space: normal; }\r\n    @media (max-width: 560px) {\r\n      #ffdc-dividend-calc table.ffdc-ani tr { display: block; padding: .45rem 0; border-bottom: 1px solid var(--ffdc-line); }\r\n      #ffdc-dividend-calc table.ffdc-ani td {\r\n        display: block; border-bottom: none; padding: .05rem 0;\r\n        text-align: left; white-space: normal;\r\n      }\r\n      #ffdc-dividend-calc table.ffdc-ani td:last-child { font-weight: 600; color: var(--ffdc-primary); }\r\n      #ffdc-dividend-calc table.ffdc-ani tr.ffdc-key { background: var(--ffdc-light); padding: .45rem .4rem; border-radius: 6px; border-bottom: none; margin: .2rem 0; }\r\n      #ffdc-dividend-calc table.ffdc-ani tr.ffdc-key td { background: transparent; }\r\n      #ffdc-dividend-calc table.ffdc-ani, #ffdc-dividend-calc table.ffdc-ani tbody { display: block; width: 100%; }\r\n      #ffdc-dividend-calc table.ffdc-ani caption { display: block; }\r\n    }\r\n    @media (max-width: 480px) {\r\n      #ffdc-dividend-calc { padding: 1.1rem .9rem; }\r\n      #ffdc-dividend-calc .ffdc-title { font-size: 1.15rem; }\r\n      #ffdc-dividend-calc .ffdc-stat { flex: 1 1 calc(50% - .75rem); min-width: 130px; padding: .55rem .6rem; }\r\n      #ffdc-dividend-calc .ffdc-stat b { font-size: 1.05rem; }\r\n      #ffdc-dividend-calc table.ffdc-table { font-size: .8rem; }\r\n      #ffdc-dividend-calc table.ffdc-table th, #ffdc-dividend-calc table.ffdc-table td { padding: .4rem .3rem; }\r\n      #ffdc-dividend-calc .ffdc-field { flex: 1 1 100%; }\r\n    }\r\n  <\/style>\r\n\r\n  <p class=\"ffdc-title\">Work out a client&rsquo;s 2026\/27 dividend tax position<\/p>\r\n  <p class=\"ffdc-sub\">Enter gross annual income figures, and the <strong>net<\/strong> amounts actually paid for pension contributions and Gift Aid. The calculator grosses these up, works out adjusted net income and your Personal Allowance, extends the rate bands, then stacks income in the statutory order &dash; non-savings first, then savings, then dividends.<\/p>\r\n\r\n  <p class=\"ffdc-sect\">Income (gross)<\/p>\r\n  <div class=\"ffdc-grid\">\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-ns\">Salary &amp; other non-savings income\r\n        <span class=\"ffdc-hint\">Salary, pension income, rental profit. Enter salary after any &ldquo;net pay&rdquo; workplace pension deductions.<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-ns\" min=\"0\" step=\"any\" value=\"30000\" inputmode=\"decimal\">\r\n      <\/div>\r\n    <\/div>\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-sav\">Savings interest\r\n        <span class=\"ffdc-hint\">Outside ISAs<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-sav\" min=\"0\" step=\"any\" value=\"2000\" inputmode=\"decimal\">\r\n      <\/div>\r\n    <\/div>\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-div\">Dividends\r\n        <span class=\"ffdc-hint\">Outside ISAs<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-div\" min=\"0\" step=\"any\" value=\"20000\" inputmode=\"decimal\">\r\n      <\/div>\r\n    <\/div>\r\n  <\/div>\r\n\r\n  <p class=\"ffdc-sect\">Reliefs paid net (grossed up at 100\/80)<\/p>\r\n  <div class=\"ffdc-grid\">\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-pen\">Personal pension contributions &mdash; net\r\n        <span class=\"ffdc-hint\">Relief-at-source schemes only (e.g. SIPP, personal pension). Enter what left your bank &mdash; the provider adds 20%.<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-pen\" min=\"0\" step=\"any\" value=\"0\" inputmode=\"decimal\">\r\n      <\/div>\r\n      <span class=\"ffdc-gross\" id=\"ffdc-pen-gross\"><\/span>\r\n    <\/div>\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-ga\">Gift Aid donations &mdash; net\r\n        <span class=\"ffdc-hint\">The amount you actually donated &mdash; the charity reclaims 20%.<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-ga\" min=\"0\" step=\"any\" value=\"0\" inputmode=\"decimal\">\r\n      <\/div>\r\n      <span class=\"ffdc-gross\" id=\"ffdc-ga-gross\"><\/span>\r\n    <\/div>\r\n  <\/div>\r\n\r\n  <p class=\"ffdc-sect\">Qualifying interest payments (ITA 2007 s383) &mdash; paid gross<\/p>\r\n  <div class=\"ffdc-grid\">\r\n    <div class=\"ffdc-field\">\r\n      <label for=\"ffdc-qip\">Interest on qualifying loans\r\n        <span class=\"ffdc-hint\">Loans to buy shares in a close company, invest in a partnership, or buy plant &amp; machinery for employment. Enter the gross interest paid &mdash; no gross-up applies. Deducted from total income at Step 2, subject to the ITA 2007 s24A relief cap.<\/span>\r\n      <\/label>\r\n      <div class=\"ffdc-inputwrap\"><span>&pound;<\/span>\r\n        <input type=\"number\" id=\"ffdc-qip\" min=\"0\" step=\"any\" value=\"0\" inputmode=\"decimal\">\r\n      <\/div>\r\n      <span class=\"ffdc-gross\" id=\"ffdc-qip-note\"><\/span>\r\n    <\/div>\r\n  <\/div>\r\n\r\n  <div class=\"ffdc-warn\" id=\"ffdc-warn\"><\/div>\r\n\r\n  <div aria-live=\"polite\" id=\"ffdc-results\">\r\n    <div class=\"ffdc-summary\">\r\n      <div class=\"ffdc-stat\"><b id=\"ffdc-out-total\">&pound;0.00<\/b><small>Total income tax 2026\/27<\/small><\/div>\r\n      <div class=\"ffdc-stat\"><b id=\"ffdc-out-div\">&pound;0.00<\/b><small>Of which tax on dividends<\/small><\/div>\r\n      <div class=\"ffdc-stat\"><b id=\"ffdc-out-delta\">&pound;0.00<\/b><small>Extra dividend tax vs 2025\/26 rates<\/small><\/div>\r\n      <div class=\"ffdc-stat\"><b id=\"ffdc-out-eff\">0%<\/b><small>Effective rate on dividends<\/small><\/div>\r\n    <\/div>\r\n\r\n    <div class=\"ffdc-barwrap\">\r\n      <p class=\"ffdc-barcap\">How your income fills the 2026\/27 bands<\/p>\r\n      <div class=\"ffdc-bar\" id=\"ffdc-bar\" role=\"img\" aria-label=\"Visual breakdown of how total income fills the tax bands\"><\/div>\r\n      <ul class=\"ffdc-legend\">\r\n        <li><span class=\"ffdc-dot ffdc-seg-relief\"><\/span>Qualifying interest<\/li>\r\n        <li><span class=\"ffdc-dot ffdc-seg-pa\"><\/span>Personal Allowance<\/li>\r\n        <li><span class=\"ffdc-dot ffdc-seg-nil\"><\/span>Nil-rate (SR \/ PSA \/ dividend allowance)<\/li>\r\n        <li><span class=\"ffdc-dot ffdc-seg-b0\"><\/span>Basic rate<\/li>\r\n        <li><span class=\"ffdc-dot ffdc-seg-b1\"><\/span>Higher rate<\/li>\r\n        <li><span class=\"ffdc-dot ffdc-seg-b2\"><\/span>Additional rate<\/li>\r\n      <\/ul>\r\n    <\/div>\r\n\r\n    <div class=\"ffdc-tablewrap\">\r\n    <table class=\"ffdc-table ffdc-ani\">\r\n      <caption>Adjusted net income &amp; Personal Allowance<\/caption>\r\n      <tbody id=\"ffdc-ani-rows\"><\/tbody>\r\n    <\/table>\r\n    <\/div>\r\n\r\n    <div class=\"ffdc-tablewrap\" style=\"margin-top:1.25rem;\">\r\n    <table class=\"ffdc-table ffdc-stack\">\r\n      <caption>How the bands fill (stacking order)<\/caption>\r\n      <thead>\r\n        <tr><th scope=\"col\">Slice<\/th><th scope=\"col\">Amount<\/th><th scope=\"col\">Rate<\/th><th scope=\"col\">Tax<\/th><\/tr>\r\n      <\/thead>\r\n      <tbody id=\"ffdc-rows\"><\/tbody>\r\n    <\/table>\r\n    <\/div>\r\n  <\/div>\r\n  <script>\r\n  (function () {\r\n    \"use strict\";\r\n    var C = {\r\n      PA: 12570, PA_TAPER_START: 100000,\r\n      BASIC_LIMIT: 37700, HIGHER_LIMIT: 125140,\r\n      DIV_ALLOWANCE: 500, SR_SAVINGS: 5000,\r\n      NS_RATES: [20, 40, 45],\r\n      DIV_RATES: [10.75, 35.75, 39.35],\r\n      DIV_RATES_PRIOR: [8.75, 33.75, 39.35]\r\n    };\r\n    function r2(n) { return Math.round(n * 100 + 1e-7) \/ 100; }\r\n    \/\/ Tax on one slice, in pounds, rounded to the penny (amount\u00a3 \u00d7 rate% = pence)\r\n    function sliceTax(amount, ratePct) { return Math.round(amount * ratePct + 1e-7) \/ 100; }\r\n    function fmt(n) {\r\n      return \"\\u00A3\" + n.toLocaleString(\"en-GB\", { minimumFractionDigits: 2, maximumFractionDigits: 2 });\r\n    }\r\n    function grossUp(net) { return r2(net \/ 0.8); } \/\/ net \u00d7 100\/80\r\n\r\n    \/\/ Split `amount` across bands starting at taxable-income position `from`,\r\n    \/\/ using (possibly extended) band edges.\r\n    function splitAcrossBands(from, amount, basicLimit, higherLimit) {\r\n      var out = [], edges = [basicLimit, higherLimit, Infinity], pos = from, left = amount;\r\n      for (var b = 0; b < 3 && left > 0; b++) {\r\n        if (pos < edges[b]) {\r\n          var take = Math.min(left, edges[b] - pos);\r\n          out.push({ band: b, amount: take });\r\n          pos += take; left -= take;\r\n        }\r\n      }\r\n      return out;\r\n    }\r\n\r\n    \/\/ One full computation for a given Personal Allowance allocation order.\r\n    \/\/ The taxation stacking order is always non-savings, savings, dividends.\r\n    function computeWith(ns, sav, div, penNet, gaNet, qip, order, qipOrder) {\r\n      var total = ns + sav + div;\r\n      var penGross = grossUp(penNet), gaGross = grossUp(gaNet);\r\n\r\n      \/\/ Qualifying interest payments (ITA 2007 s383+): Step 2 deduction from total\r\n      \/\/ income, capped at the greater of \u00a350,000 and 25% of adjusted total income\r\n      \/\/ (approximated as total income less gross pension contributions) \u2014 s24A.\r\n      var reliefCap = Math.max(50000, r2(0.25 * Math.max(0, total - penGross)));\r\n      var qipEligible = Math.min(qip, reliefCap);\r\n      \/\/ Set against income in the beneficial order (s25(2)); cannot exceed the income itself\r\n      var qAmounts = { ns: ns, sav: sav, div: div };\r\n      var qalloc = { ns: 0, sav: 0, div: 0 }, qLeft = qipEligible;\r\n      qipOrder.forEach(function (k) {\r\n        qalloc[k] = Math.min(qLeft, qAmounts[k]);\r\n        qLeft -= qalloc[k];\r\n      });\r\n      var qipUsed = r2(qipEligible - qLeft);\r\n      var ns1 = ns - qalloc.ns, sav1 = sav - qalloc.sav, div1 = div - qalloc.div;\r\n      var netIncome = r2(total - qipUsed);\r\n\r\n      \/\/ Adjusted net income (ANI): net income less gross pension (RAS) and gross Gift Aid\r\n      var ani = Math.max(0, r2(netIncome - penGross - gaGross));\r\n\r\n      \/\/ Personal Allowance tapered on ANI\r\n      var pa = C.PA, paReduction = 0;\r\n      if (ani > C.PA_TAPER_START) {\r\n        paReduction = Math.min(C.PA, (ani - C.PA_TAPER_START) \/ 2);\r\n        pa = r2(C.PA - paReduction);\r\n      }\r\n\r\n      \/\/ Band extension by gross contributions (FA 2004 s192(4); ITA 2007 s414)\r\n      var basicLimit = C.BASIC_LIMIT + penGross + gaGross;\r\n      var higherLimit = C.HIGHER_LIMIT + penGross + gaGross;\r\n\r\n      var amounts = { ns: ns1, sav: sav1, div: div1 };\r\n      var alloc = { ns: 0, sav: 0, div: 0 }, paLeft = pa;\r\n      order.forEach(function (k) {\r\n        alloc[k] = Math.min(paLeft, amounts[k]);\r\n        paLeft -= alloc[k];\r\n      });\r\n      var nsT = ns1 - alloc.ns, savT = sav1 - alloc.sav, divT = div1 - alloc.div;\r\n      var taxableTotal = nsT + savT + divT;\r\n\r\n      \/\/ PSA by band of total taxable income against EXTENDED limits (indicative s12B test)\r\n      var psa = taxableTotal <= basicLimit ? 1000 : (taxableTotal <= higherLimit ? 500 : 0);\r\n\r\n      var rows = [], pos = 0, totalTax = 0, divTax = 0, divTaxPrior = 0;\r\n      var bandName = [\"basic rate\", \"higher rate\", \"additional rate\"];\r\n\r\n      \/\/ 1) Non-savings income\r\n      splitAcrossBands(pos, nsT, basicLimit, higherLimit).forEach(function (s) {\r\n        var t = sliceTax(s.amount, C.NS_RATES[s.band]);\r\n        rows.push([\"Non-savings, \" + bandName[s.band], s.amount, C.NS_RATES[s.band], t, \"b\" + s.band]);\r\n        totalTax += t; pos += s.amount;\r\n      });\r\n\r\n      \/\/ 2) Savings: starting rate, then PSA, then taxed remainder\r\n      var srBand = Math.max(0, C.SR_SAVINGS - nsT), savLeft = savT;\r\n      var srUsed = Math.min(srBand, savLeft);\r\n      if (srUsed > 0) {\r\n        rows.push([\"Savings, starting rate (band \\u00A35,000 \\u2212 \" + fmt(nsT) + \" taxable non-savings)\", srUsed, 0, 0, \"nil\"]);\r\n        pos += srUsed; savLeft -= srUsed;\r\n      }\r\n      var psaUsed = Math.min(psa, savLeft);\r\n      if (psaUsed > 0) {\r\n        var psaWhy = psa === 1000\r\n          ? (taxableTotal <= C.BASIC_LIMIT ? \"basic-rate taxpayer\" : \"basic-rate after band extension\")\r\n          : \"higher-rate taxpayer\";\r\n        rows.push([\"Savings, PSA (\\u00A3\" + (psa === 1000 ? \"1,000\" : \"500\") + \" \\u2014 \" + psaWhy + \")\", psaUsed, 0, 0, \"nil\"]);\r\n        pos += psaUsed; savLeft -= psaUsed;\r\n      }\r\n      splitAcrossBands(pos, savLeft, basicLimit, higherLimit).forEach(function (s) {\r\n        var t = sliceTax(s.amount, C.NS_RATES[s.band]);\r\n        rows.push([\"Savings, \" + bandName[s.band], s.amount, C.NS_RATES[s.band], t, \"b\" + s.band]);\r\n        totalTax += t; pos += s.amount;\r\n      });\r\n\r\n      \/\/ 3) Dividends: \u00a3500 allowance (nil rate, uses band), then dividend rates\r\n      var divLeft = divT, allowUsed = Math.min(C.DIV_ALLOWANCE, divLeft);\r\n      if (allowUsed > 0) { rows.push([\"Dividends, allowance\", allowUsed, 0, 0, \"nil\"]); pos += allowUsed; divLeft -= allowUsed; }\r\n      splitAcrossBands(pos, divLeft, basicLimit, higherLimit).forEach(function (s) {\r\n        var t = sliceTax(s.amount, C.DIV_RATES[s.band]);\r\n        var tPrior = sliceTax(s.amount, C.DIV_RATES_PRIOR[s.band]);\r\n        rows.push([\"Dividends, \" + bandName[s.band], s.amount, C.DIV_RATES[s.band], t, \"b\" + s.band]);\r\n        totalTax += t; divTax += t; divTaxPrior += tPrior; pos += s.amount;\r\n      });\r\n\r\n      totalTax = r2(totalTax); divTax = r2(divTax);\r\n      return {\r\n        rows: rows, totalTax: totalTax, divTax: divTax,\r\n        delta: r2(divTax - divTaxPrior),\r\n        eff: div > 0 ? (divTax \/ div) * 100 : 0,\r\n        total: total, penGross: penGross, gaGross: gaGross, penNet: penNet, gaNet: gaNet,\r\n        ani: ani, pa: pa, paReduction: r2(paReduction), alloc: alloc, order: order,\r\n        nsT: nsT, savT: savT, divT: divT, ns1: ns1, sav1: sav1, div1: div1,\r\n        qip: qip, qipEligible: qipEligible, qipUsed: qipUsed, qalloc: qalloc, qipOrder: qipOrder,\r\n        reliefCap: reliefCap, netIncome: netIncome,\r\n        basicLimit: basicLimit, higherLimit: higherLimit\r\n      };\r\n    }\r\n\r\n    \/\/ Beneficial ordering (ITA 2007 s25(2)): try every PA allocation order,\r\n    \/\/ keep the lowest total tax. Default order first so ties resolve to it.\r\n    var ORDERS = [\r\n      [\"ns\", \"sav\", \"div\"], [\"ns\", \"div\", \"sav\"],\r\n      [\"sav\", \"ns\", \"div\"], [\"sav\", \"div\", \"ns\"],\r\n      [\"div\", \"ns\", \"sav\"], [\"div\", \"sav\", \"ns\"]\r\n    ];\r\n    function compute(ns, sav, div, penNet, gaNet, qip) {\r\n      var best = null;\r\n      ORDERS.forEach(function (qipOrder) {\r\n        ORDERS.forEach(function (order) {\r\n          var r = computeWith(ns, sav, div, penNet, gaNet, qip, order, qipOrder);\r\n          if (best === null || r.totalTax < best.totalTax) best = r;\r\n        });\r\n      });\r\n      return best;\r\n    }\r\n\r\n    function readInput(el) {\r\n      var v = parseFloat(el.value);\r\n      if (!isFinite(v) || v < 0) v = 0;\r\n      return v;\r\n    }\r\n\r\n    var root = document.getElementById(\"ffdc-dividend-calc\");\r\n    var inNs = root.querySelector(\"#ffdc-ns\"), inSav = root.querySelector(\"#ffdc-sav\"),\r\n        inDiv = root.querySelector(\"#ffdc-div\"), inPen = root.querySelector(\"#ffdc-pen\"),\r\n        inGa = root.querySelector(\"#ffdc-ga\"), inQip = root.querySelector(\"#ffdc-qip\");\r\n    var outRows = root.querySelector(\"#ffdc-rows\"), aniRows = root.querySelector(\"#ffdc-ani-rows\"),\r\n        warn = root.querySelector(\"#ffdc-warn\");\r\n\r\n    function aniRow(label, val, cls) {\r\n      return \"<tr\" + (cls ? \" class='\" + cls + \"'\" : \"\") + \"><td>\" + label + \"<\/td><td>\" + val + \"<\/td><\/tr>\";\r\n    }\r\n\r\n    function render() {\r\n      var ns = readInput(inNs), sav = readInput(inSav), div = readInput(inDiv),\r\n          pen = readInput(inPen), ga = readInput(inGa), qip = readInput(inQip);\r\n      var r = compute(ns, sav, div, pen, ga, qip);\r\n\r\n      \/\/ Live gross-up captions under the net inputs\r\n      root.querySelector(\"#ffdc-pen-gross\").textContent =\r\n        pen > 0 ? \"Grossed up: \" + fmt(r.penGross) + \" (net \" + fmt(pen) + \" \\u00D7 100\/80)\" : \"\";\r\n      root.querySelector(\"#ffdc-ga-gross\").textContent =\r\n        ga > 0 ? \"Grossed up: \" + fmt(r.gaGross) + \" (net \" + fmt(ga) + \" \\u00D7 100\/80)\" : \"\";\r\n      var qipMsg = \"\";\r\n      if (qip > 0 && r.qipEligible < qip) qipMsg = \"Capped at \" + fmt(r.qipEligible) + \" (greater of \\u00A350,000 and 25% of adjusted total income)\";\r\n      else if (qip > 0 && r.qipUsed < r.qipEligible) qipMsg = \"Only \" + fmt(r.qipUsed) + \" usable \\u2014 relief cannot exceed income\";\r\n      else if (qip > 0) qipMsg = \"Deducted in full: \" + fmt(r.qipUsed);\r\n      root.querySelector(\"#ffdc-qip-note\").textContent = qipMsg;\r\n\r\n      root.querySelector(\"#ffdc-out-total\").textContent = fmt(r.totalTax);\r\n      root.querySelector(\"#ffdc-out-div\").textContent = fmt(r.divTax);\r\n      root.querySelector(\"#ffdc-out-delta\").textContent = (r.delta >= 0 ? \"+\" : \"\\u2212\") + fmt(Math.abs(r.delta));\r\n      root.querySelector(\"#ffdc-out-eff\").textContent = r.eff.toFixed(1) + \"%\";\r\n\r\n      \/\/ ANI & Personal Allowance panel\r\n      var a = \"\";\r\n      a += aniRow(\"Total income\", fmt(r.total));\r\n      if (r.qip > 0) {\r\n        var qLbl = { ns: \"non-savings income\", sav: \"savings interest\", div: \"dividends\" };\r\n        var qAmt = { ns: ns, sav: sav, div: div };\r\n        a += aniRow(\"Qualifying interest payments claimed (ITA 2007 s383)\", fmt(r.qip));\r\n        a += aniRow(\"&nbsp;&nbsp;relief cap \\u2014 greater of \\u00A350,000 and 25% of adjusted total income\", fmt(r.reliefCap));\r\n        if (r.qipEligible < r.qip) {\r\n          a += aniRow(\"&nbsp;&nbsp;restricted by the cap (ITA 2007 s24A)\", \"allowed \" + fmt(r.qipEligible));\r\n        }\r\n        var qLeft = r.qipEligible, qAny = false;\r\n        r.qipOrder.forEach(function (k) {\r\n          var used = r.qalloc[k];\r\n          if (used > 0) {\r\n            qAny = true; qLeft = r2(qLeft - used);\r\n            a += aniRow(\"&nbsp;&nbsp;set against \" + qLbl[k] + \" of \" + fmt(qAmt[k]),\r\n                        \"\\u2212 \" + fmt(used) + \" &rarr; \" + fmt(qLeft) + \" left\");\r\n          }\r\n        });\r\n        if (!qAny) a += aniRow(\"&nbsp;&nbsp;no income to set the relief against\", \"\\u2014\");\r\n        if (qLeft > 0) a += aniRow(\"&nbsp;&nbsp;unused relief \\u2014 income fully covered (no carry-forward for interest relief)\", fmt(qLeft));\r\n        a += aniRow(\"Net income after qualifying interest (ITA 2007 s23, Step 2)\", fmt(r.netIncome), \"ffdc-key\");\r\n        a += aniRow(\"Relief applied in the beneficial order\", \"ITA 2007 s25(2)\");\r\n      }\r\n      if (r.penGross > 0) a += aniRow(\"Less: pension contributions, grossed up (net \" + fmt(r.penNet) + \" \\u00D7 100\/80)\", \"\\u2212 \" + fmt(r.penGross));\r\n      if (r.gaGross > 0) a += aniRow(\"Less: Gift Aid donations, grossed up (net \" + fmt(r.gaNet) + \" \\u00D7 100\/80)\", \"\\u2212 \" + fmt(r.gaGross));\r\n      a += aniRow(\"Adjusted net income (ANI)\", fmt(r.ani), \"ffdc-key\");\r\n      if (r.ani > C.PA_TAPER_START) {\r\n        a += aniRow(\"ANI over \\u00A3100,000\", fmt(r2(r.ani - C.PA_TAPER_START)));\r\n        a += aniRow(\"Personal Allowance reduced by \\u00A31 for every \\u00A32 over\", \"\\u2212 \" + fmt(r.paReduction));\r\n      } else {\r\n        a += aniRow(\"ANI does not exceed \\u00A3100,000\", \"full allowance retained\");\r\n      }\r\n      a += aniRow(\"Personal Allowance for 2026\/27\", fmt(r.pa), \"ffdc-key\");\r\n      \/\/ Consumption of the Personal Allowance, in the order actually applied\r\n      var typeLabel = { ns: \"non-savings income\", sav: \"savings interest\", div: \"dividends\" };\r\n      var typeAmount = { ns: r.ns1, sav: r.sav1, div: r.div1 };\r\n      var paLeft = r.pa, anyUsed = false;\r\n      r.order.forEach(function (k) {\r\n        var used = r.alloc[k];\r\n        if (used > 0) {\r\n          anyUsed = true;\r\n          paLeft = r2(paLeft - used);\r\n          a += aniRow(\"&nbsp;&nbsp;set against \" + typeLabel[k] + \" of \" + fmt(typeAmount[k]),\r\n                      \"\\u2212 \" + fmt(used) + \" &rarr; \" + fmt(paLeft) + \" left\");\r\n        }\r\n      });\r\n      if (r.pa > 0 && !anyUsed) a += aniRow(\"&nbsp;&nbsp;no income to set the allowance against\", \"\\u2014\");\r\n      a += aniRow(\"Unused Personal Allowance\" + (paLeft > 0 ? \" (lost \\u2014 it cannot be carried forward)\" : \"\"), fmt(paLeft));\r\n      a += aniRow(\"Taxable income after allowance\",\r\n                  \"non-savings \" + fmt(r.nsT) + \" &middot; savings \" + fmt(r.savT) + \" &middot; dividends \" + fmt(r.divT),\r\n                  \"ffdc-key\");\r\n      a += aniRow(\"Allowance applied in the beneficial order\", \"ITA 2007 s25(2)\");\r\n      if (r.penGross > 0 || r.gaGross > 0) {\r\n        a += aniRow(\"Basic-rate limit extended to\", fmt(r.basicLimit) + \" (\\u00A337,700 + gross reliefs)\");\r\n        a += aniRow(\"Additional-rate threshold extended to\", fmt(r.higherLimit));\r\n      }\r\n      aniRows.innerHTML = a;\r\n\r\n      \/\/ Band-filling bar (the metaphor: income pouring through the bands)\r\n      var segs = [];\r\n      if (r.qipUsed > 0) segs.push({ label: \"Qualifying interest relief\", amt: r.qipUsed, cat: \"relief\" });\r\n      var paUsedTotal = r2(r.alloc.ns + r.alloc.sav + r.alloc.div);\r\n      if (paUsedTotal > 0) segs.push({ label: \"Personal Allowance\", amt: paUsedTotal, cat: \"pa\" });\r\n      r.rows.forEach(function (row) { segs.push({ label: row[0], amt: row[1], cat: row[4] }); });\r\n      var bar = root.querySelector(\"#ffdc-bar\"), barHtml = \"\", ariaBits = [];\r\n      if (r.total > 0) {\r\n        segs.forEach(function (g) {\r\n          var pct = (g.amt \/ r.total) * 100;\r\n          barHtml += \"<div class='ffdc-seg ffdc-seg-\" + g.cat + \"' style='width:\" + pct.toFixed(2) +\r\n            \"%' title='\" + g.label.replace(\/'\/g, \"&#39;\") + \" \\u2014 \" + fmt(g.amt) + \"'><\/div>\";\r\n          ariaBits.push(g.label + \" \" + fmt(g.amt));\r\n        });\r\n      }\r\n      bar.innerHTML = barHtml;\r\n      bar.setAttribute(\"aria-label\", r.total > 0 ? \"Income fills the bands as: \" + ariaBits.join(\"; \") : \"No income entered\");\r\n      bar.parentElement.style.display = r.total > 0 ? \"\" : \"none\";\r\n\r\n      \/\/ Band-stacking table\r\n      var html = \"\";\r\n      r.rows.forEach(function (row) {\r\n        html += \"<tr><td>\" + row[0] + \"<\/td><td>\" + fmt(row[1]) + \"<\/td><td>\" +\r\n          (row[2] === 0 ? \"0%\" : row[2] + \"%\") + \"<\/td><td>\" + fmt(row[3]) + \"<\/td><\/tr>\";\r\n      });\r\n      html += \"<tr class='ffdc-total'><td>Total income tax<\/td><td><\/td><td><\/td><td>\" + fmt(r.totalTax) + \"<\/td><\/tr>\";\r\n      outRows.innerHTML = html;\r\n\r\n      if (r.pa < C.PA) {\r\n        warn.style.display = \"block\";\r\n        warn.textContent = \"Adjusted net income is above \\u00A3100,000, so the Personal Allowance has been tapered to \" + fmt(r.pa) + \".\";\r\n      } else {\r\n        warn.style.display = \"none\";\r\n      }\r\n    }\r\n\r\n    [inNs, inSav, inDiv, inPen, inGa].forEach(function (el) { el.addEventListener(\"input\", render); });\r\n    render();\r\n  })();\r\n  <\/script>\r\n<\/div>\r\n\r\n\r\n<!-- ================= end FigsFlow dividend calculator section ================= -->\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b5ba9e elementor-widget elementor-widget-text-editor\" data-id=\"6b5ba9e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">From 6 April 2026, the basic and higher dividend tax rates each rose by 2 percentage points. For the 2026\/27 tax year, UK dividend tax rates remain an important consideration for tax planning. The rates are <\/span><b><span data-contrast=\"auto\">10.75% for basic rate taxpayers,\u00a035.75% for higher rate taxpayers, and 39.35% for\u00a0additional\u00a0rate taxpayers<\/span><\/b><span data-contrast=\"auto\">, after\u00a0taking into account\u00a0the dividend allowance.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:160,&quot;335559740&quot;:279}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">This guide provides a quick reference for accountants, including the latest dividend tax rates, allowance details, examples, and practical points to consider when advising clients.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f55bd0 elementor-widget elementor-widget-heading\" data-id=\"6f55bd0\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">What Changed in the Dividend Tax Rates for 2026\/27? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-791be51 e-flex e-con-boxed e-con e-parent\" data-id=\"791be51\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-b1a8bcc elementor-widget elementor-widget-text-editor\" data-id=\"b1a8bcc\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"NormalTextRun SCXW232293902 BCX8\">The basic and higher rates each went up 2 percentage points &#8211; the statutory labels are the &#8220;dividend ordinary rate&#8221; and &#8220;dividend upper rate&#8221; (<a href=\"https:\/\/www.legislation.gov.uk\/ukpga\/2007\/3\/section\/8\" rel=\"nofollow noopener\" target=\"_blank\">ITA 2007 s8<\/a>), which is the wording you&#8217;ll see in the GOV.UK policy paper. The additional rate and the allowance stayed the same.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-012b27b elementor-widget__width-initial elementor-widget elementor-widget-image\" data-id=\"012b27b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1000\" height=\"488\" src=\"https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-1024x500.png\" class=\"attachment-large size-large wp-image-39341\" alt=\"dividend_rate_changes_2026_27\" srcset=\"https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-1024x500.png 1024w, https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-300x146.png 300w, https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-768x375.png 768w, https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-1536x749.png 1536w, https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27-650x317.png 650w, https:\/\/figsflow.com\/uk\/wp-content\/uploads\/2026\/07\/dividend_rate_changes_2026_27.png 1640w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/>\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-34f4600 e-flex e-con-boxed e-con e-parent\" data-id=\"34f4600\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-54cf3f2 elementor-widget elementor-widget-text-editor\" data-id=\"54cf3f2\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The change was confirmed at the Autumn 2025 Budget and started on 6 April 2026. The same rates apply across England,\u00a0Wales\u00a0and Northern Ireland. Scottish taxpayers also pay these UK-wide dividend rates, even though their other income follows Scottish bands.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Source<\/span><span data-contrast=\"auto\">:\u00a0<\/span><a href=\"https:\/\/www.gov.uk\/government\/publications\/changes-to-tax-rates-for-property-savings-dividend-income\/changes-to-tax-rates-for-property-savings-dividend-income\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Changes to tax rates for property, savings and dividend income, GOV.UK<\/span><\/a><span data-contrast=\"auto\">.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5e2d7ea e-flex e-con-boxed e-con e-parent\" data-id=\"5e2d7ea\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-9ced5ae elementor-widget elementor-widget-heading\" data-id=\"9ced5ae\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Much Is the Dividend Allowance for 2026\/27? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-edc1949 e-flex e-con-boxed e-con e-parent\" data-id=\"edc1949\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-7cabffd elementor-widget elementor-widget-text-editor\" data-id=\"7cabffd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">The dividend allowance is\u00a0\u00a3500 for 2026\/27, the same as the two years before it.\u00a0While the allowance\u00a0remains\u00a0unchanged, the increase in dividend tax rates means clients receiving dividends above this threshold may face a higher tax liability.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The allowance is taxed at 0%, but it still uses up \u00a3500 of your band. It does not give you extra basic-rate room. A higher-rate client uses their \u00a3500 at the higher-rate point, where their income already sits, not back at the basic\u00a0rate.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-628c7a6 e-flex e-con-boxed e-con e-parent\" data-id=\"628c7a6\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-41ff76d elementor-widget elementor-widget-heading\" data-id=\"41ff76d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Do You Apply the Dividend Tax Rates? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a51c6d8 elementor-widget elementor-widget-text-editor\" data-id=\"a51c6d8\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Dividends are taxed last, after your other income has filled the bands below.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">The order is fixed, salary,\u00a0pension\u00a0and rental income first, then savings income, then dividends on top. The band a dividend lands in depends on everything below it, not on how big the dividend is.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-68e093f e-flex e-con-boxed e-con e-parent\" data-id=\"68e093f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d654edd elementor-widget elementor-widget-heading\" data-id=\"d654edd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Method of Calculating Dividend Tax <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-4ab8a8f e-flex e-con-boxed e-con e-parent\" data-id=\"4ab8a8f\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4db4661 elementor-widget elementor-widget-text-editor\" data-id=\"4db4661\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Add the dividends to all other income to find the total and the bands in play<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Use the Personal Allowance against other income first, then against dividends if any is left<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Take off the \u00a3500 dividend allowance, taxed at 0%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Apply the relevant dividend tax rate, 10.75%, 35.75% or 39.35% \u2014 to the remaining dividends depending on which tax band they fall into<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-db19a64 e-con-full e-flex e-con e-child\" data-id=\"db19a64\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t<div class=\"elementor-element elementor-element-d880933 elementor-position-left bdt-icon-type-icon bdt-icon-effect-none elementor-widget elementor-widget-bdt-advanced-icon-box\" data-id=\"d880933\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"bdt-advanced-icon-box.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box\">\n\n\t\t\t\n\t\t\t<div class=\"bdt-ep-advanced-icon-box-content\">\n\n\t\t\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-icon-heading bdt-flex bdt-flex-middle\">\n\n\t\t\t\n\t\t\n\t\n\n\t\t\t<div class=\"bdt-icon-box-title-wrapper\">\n\n\t\t\t\t\t\t\t\t\t<p class=\"bdt-ep-advanced-icon-box-title ep-title-\">\n\t\t\t\t\t\t<span >\n\t\t\t\t\t\t\tWorked Example \t\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/p>\n\t\t\t\t\n\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-advanced-icon-box-description\">\n\t\t\t\t\t\t<p><em>Priya runs a consultancy through her own company. She pays herself a \u00a330,000 salary, earns \u00a32,000 in interest on a business savings account held personally, and draws \u00a320,000 in dividends across the year. All three sources stack\u00a0in order to\u00a0set the rate on her dividends.\u00a0<\/em><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><table data-tablestyle=\"MsoTableGrid\" data-tablelook=\"1696\" aria-rowcount=\"9\"><tbody><tr aria-rowindex=\"1\"><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Computation<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Non\u00a0saving(Salary)<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Savings<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Dividends<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Total<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"2\"><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"3\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Income<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">30000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">2000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">20000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">52000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"4\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Less: Personal\u00a0allowance<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">(12570)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">(12570)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"5\"><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Taxable income<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">17430<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">2000<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">20000<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">39430<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"6\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Taxed at 0%<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">500<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">500<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">1000<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"7\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Taxed at 20%<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">17430<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">1500<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">18930<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"8\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Taxed at 10.75%<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">17770<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">17770<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"9\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Taxed at 35.75%<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">1730<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">1730<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><\/tr><\/tbody><\/table><p><span data-contrast=\"auto\">The grid shows how each income type fills the bands. The working below shows where each tax figure comes from.<\/span><span data-ccp-props=\"{&quot;335551550&quot;:1,&quot;335551620&quot;:1}\">\u00a0<\/span><\/p><table data-tablestyle=\"MsoNormalTable\" data-tablelook=\"1696\" aria-rowcount=\"8\"><tbody><tr aria-rowindex=\"1\"><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Slice<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Amount \u00d7 rate<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Tax<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"2\"><td data-celllook=\"0\"><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">Salary, basic rate<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a317,430 \u00d7 20%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a33,486.00<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"3\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Savings, PSA<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3500 \u00d7 0%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a30.00<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"4\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Savings, basic rate<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a31,500 \u00d7 20%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3300.00<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"5\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Dividends, allowance<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3500 \u00d7 0%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a30.00<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"6\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Dividends, basic rate<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a317,770 \u00d7 10.75%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a31,910.28<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"7\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Dividends, higher rate<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a31,730 \u00d7 35.75%<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">\u00a3618.48<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"8\"><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Total income tax<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">\u00a36,314.76<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><\/tbody><\/table><p><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;201341983&quot;:0,&quot;335551550&quot;:1,&quot;335551620&quot;:1,&quot;335559685&quot;:0,&quot;335559737&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">Read the grid left to right in stacking order. Salary fills the basic-rate band first, savings sit on top of it, and the dividends take what basic-rate room is left before the rest crosses into the higher rate. Of the \u00a36,314.76 total, the dividends account for \u00a32,528.76. <\/span><\/p><p><b><span data-contrast=\"auto\">Note:<\/span><\/b><span data-contrast=\"auto\"> The \u00a32,000 of savings interest is not taxed at the dividend rate. Because Priya&#8217;s total taxable income of \u00a339,430 takes her over the \u00a337,700 basic-rate band, she is a higher-rate taxpayer, so her Personal Savings Allowance is \u00a3500, not \u00a31,000 (ITA 2007 s12B). The first \u00a3500 of interest is taxed at 0% and the remaining \u00a31,500 at 20% \u2014 matching the computation above. The interest still matters for the dividend position, because all \u00a32,000 fills basic-rate band and pushes more of the dividends into the higher rate.<\/span><\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\n\t\t\n\t\t\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-395dc09 elementor-widget elementor-widget-heading\" data-id=\"395dc09\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Should Clients Still Take Dividends Over Salary in 2026\/27?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ede3167 elementor-widget elementor-widget-text-editor\" data-id=\"ede3167\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"isSelectedEnd\">Dividends can still be a tax-efficient way for limited company directors to extract profits in 2026\/27, but they are no longer an automatic choice. With dividend tax rates rising and the dividend allowance remaining low, clients should review the balance between salary and dividends carefully.<\/p>\n<p class=\"isSelectedEnd\">The main advantage of dividends is that they are not subject to National Insurance contributions. Dividend tax rates are also usually lower than income tax rates on salary, which means dividends may still be attractive where the company has sufficient post-tax profits and distributable reserves.<\/p>\n<p class=\"isSelectedEnd\">However, salary should not be ignored. Salary is normally deductible for Corporation Tax purposes, can help directors maintain National Insurance credits for State Pension entitlement, and provides a more regular and reliable form of income. Dividends, by contrast, can only be paid from available company profits and may be less flexible where there are multiple shareholders.<\/p>\n<p>In most cases, the best approach for 2026\/27 will be a tailored mix of salary and dividends rather than relying on one method alone. Clients should seek advice before deciding, as the most efficient structure will depend on company profits, personal income needs, National Insurance, Corporation Tax and wider tax planning.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-43f85b7 elementor-widget elementor-widget-heading\" data-id=\"43f85b7\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Which Dividends Are Tax-Free?\n<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-5b8dfcd elementor-widget elementor-widget-text-editor\" data-id=\"5b8dfcd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p class=\"isSelectedEnd\">Some dividends can be received tax-free, depending on the client\u2019s circumstances. For 2026\/27, individuals can receive up to \u00a3500 of dividend income within the dividend allowance before dividend tax is due. Dividends received within an ISA are also tax-free and do not need to be declared on a Self Assessment tax return.<\/p>\n<p class=\"isSelectedEnd\">Dividend income may also fall within the client\u2019s Personal Allowance if they have not used it against salary, pension income or other taxable income. However, once the dividend allowance and any available Personal Allowance have been used, dividend tax will apply based on the client\u2019s income tax band.<\/p>\n<p>Clients should still keep records of dividends received, especially where total income is close to a higher tax band or they need to complete a tax return.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-36a3a3f elementor-widget elementor-widget-heading\" data-id=\"36a3a3f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">When Must You Report Dividends to HMRC? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-bb3676a elementor-widget elementor-widget-text-editor\" data-id=\"bb3676a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">It depends on how much the client received in dividends, and on whether they already file a tax return.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\">A client whose dividends are within the\u00a0\u00a3500 allowance has nothing to report. Once dividends go above the allowance, there is tax to pay and HMRC must be told every year it arises.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><table data-tablestyle=\"MsoNormalTable\" data-tablelook=\"1696\" aria-rowcount=\"4\"><tbody><tr aria-rowindex=\"1\"><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Dividend income for the year<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><b><span data-contrast=\"auto\">Action<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:2,&quot;335551620&quot;:2,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"2\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Within the\u00a0\u00a3500 allowance<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Nothing to report.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"3\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Up to\u00a0\u00a310,000<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Tell HMRC. If the client already files\u00a0Self Assessment, report it on the return. If not, ask HMRC to update the tax code so the tax comes from wages or pension, or contact the HMRC helpline.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><tr aria-rowindex=\"4\"><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Over\u00a0\u00a310,000<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><td data-celllook=\"0\"><p><span data-contrast=\"auto\">Fill in a\u00a0Self Assessment\u00a0return.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335551550&quot;:0,&quot;335551620&quot;:0,&quot;335559738&quot;:0,&quot;335559739&quot;:0}\">\u00a0<\/span><\/p><\/td><\/tr><\/tbody><\/table><p><span data-contrast=\"auto\">A client who already sends a\u00a0Self Assessment\u00a0return, for self-employment or any other reason, reports all dividend income on that return. A client who does not usually file and needs to report must tell HMRC by 5 October after the end of the tax year the dividends fell in. For dividends over\u00a0\u00a310,000, that means registering for\u00a0Self Assessment\u00a0by the same 5 October date.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-contrast=\"auto\"><span style=\"text-decoration: underline;\">For example,<\/span> a director who first draws dividends above the allowance in the 2025\/26 tax year, which ran from 6 April 2025 to 5 April 2026, must tell HMRC by 5 October 2026, then file and pay by 31 January 2027.<\/span><span data-contrast=\"auto\">\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-5706e0d e-flex e-con-boxed e-con e-parent\" data-id=\"5706e0d\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-4b3421d elementor-widget elementor-widget-heading\" data-id=\"4b3421d\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">How Do You Pay the Dividend Tax You Owe? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6f4200f elementor-widget elementor-widget-text-editor\" data-id=\"6f4200f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"NormalTextRun SCXW45297758 BCX8\">Once the dividend tax rates have been applied and the bill is known, how the client pays depends on whether they file\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW45297758 BCX8\">Self Assessment<\/span><span class=\"NormalTextRun SCXW45297758 BCX8\">.<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class=\"elementor-element elementor-element-477a284 e-flex e-con-boxed e-con e-parent\" data-id=\"477a284\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-c31fc43 elementor-widget elementor-widget-heading\" data-id=\"c31fc43\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Paying Through Your Tax Code <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-c8f66c6 elementor-widget elementor-widget-text-editor\" data-id=\"c8f66c6\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW20318593 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW20318593 BCX8\">A PAYE client whose whole\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW20318593 BCX8\">Self Assessment<\/span><span class=\"NormalTextRun SCXW20318593 BCX8\">\u00a0bill is under\u00a0<\/span><span class=\"NormalTextRun SCXW20318593 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW20318593 BCX8\">3,000 can have the tax collected through their tax code, taken from salary or pension across the next year. This needs the online return filed by 30 December, not 31 January, and enough PAYE income for HMRC to collect against.<\/span><\/span><span class=\"EOP Selected SCXW20318593 BCX8\" data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-97c13c9 elementor-widget elementor-widget-heading\" data-id=\"97c13c9\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h3 class=\"elementor-heading-title elementor-size-default\">Paying With a Self Assessment Return <\/h3>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-a338d6f elementor-widget elementor-widget-text-editor\" data-id=\"a338d6f\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW183268883 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW183268883 BCX8\">Everyone else pays with the return. The options are online or telephone banking, a single Direct Debit, a debit or corporate credit card, or a cheque (the Post Office route has closed). Larger bills also bring payments on account, due 31\u00a0<\/span><span class=\"NormalTextRun SCXW183268883 BCX8\">January<\/span><span class=\"NormalTextRun SCXW183268883 BCX8\">\u00a0and 31 July, unless last year&#8217;s bill was under\u00a0<\/span><span class=\"NormalTextRun SCXW183268883 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW183268883 BCX8\">1,000 or more than 80% of the tax was already collected at source.<\/span><\/span><span class=\"EOP Selected SCXW183268883 BCX8\" data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-d86feb1 elementor-widget elementor-widget-heading\" data-id=\"d86feb1\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">Conclusion <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-004db3b elementor-widget elementor-widget-text-editor\" data-id=\"004db3b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p>The dividend tax rates for 2026\/27 &#8211; 10.75% basic, 35.75% higher and 39.35% additional, with the allowance held at \u00a3500 &#8211; apply to dividends received from 6 April 2026. The two-point rise means a materially larger bill for most owner-managed company clients, so the salary-dividend mix, timing of declarations and use of ISAs, pensions and spousal shareholdings all deserve a fresh look. For a client-specific figure, run the numbers through the dividend tax calculator above.<br \/>If the rate rise is prompting profit-extraction reviews across your client base, that is chargeable advisory work &#8211; scope it properly.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-7b35993 elementor-widget elementor-widget-text-editor\" data-id=\"7b35993\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<h2 aria-level=\"2\"><strong>Additional\u00a0resources\u00a0<\/strong><\/h2><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/mtd-for-income-tax-guide-for-accountants-agents\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">MTD ITSA Guide for Accountants and Tax Agents 2026<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/how-to-grow-your-accounting-practice\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">How to Grow Your Accounting Practice in 2026 | FigsFlow<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/how-tax-firms-manage-multiple-client-engagements\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">How Tax Firms Manage Multiple Client Workloads<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/tax-advisers-must-register-with-hmrc-from-may-2026\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Tax Advisers Must Register with HMRC: Deadlines &amp; Penalties<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul><ul><li aria-setsize=\"-1\" data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><a href=\"https:\/\/figsflow.com\/uk\/figsflow-ideal-proposal-solution-for-tax-counsellors\/\" target=\"_blank\" rel=\"noopener\"><span data-contrast=\"none\">Ideal Proposal Solution for Tax Counsellors | FigsFlow<\/span><\/a><span data-ccp-props=\"{}\">\u00a0<\/span><\/li><\/ul>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-6b9131b elementor-widget elementor-widget-heading\" data-id=\"6b9131b\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h2 class=\"elementor-heading-title elementor-size-default\">FAQs<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-f442e5a elementor-widget elementor-widget-bdt-accordion\" data-id=\"f442e5a\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"bdt-accordion.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-container\">\n\t\t\t<div id=\"bdt-ep-accordion-f442e5a\" class=\"bdt-ep-accordion bdt-accordion\" data-bdt-accordion=\"{&quot;collapsible&quot;:true,&quot;multiple&quot;:false,&quot;transition&quot;:&quot;ease-in-out&quot;}\" \t\tdata-settings=\"{&quot;id&quot;:&quot;bdt-ep-accordion-f442e5a&quot;,&quot;activeHash&quot;:&quot;no&quot;,&quot;activeScrollspy&quot;:null,&quot;hashTopOffset&quot;:false,&quot;hashScrollspyTime&quot;:false,&quot;closeAllItemsOnMobile&quot;:false}\">\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-item\">\n\t\t\t\t\t\t<div\t\t\t\t\t\t\tclass=\"bdt-ep-accordion-title bdt-accordion-title bdt-flex bdt-flex-middle bdt-flex-between\" id=\"bdt-ep-accordion-what-are-the-uk-dividend-tax-rates-for-202627\"\n\t\t\t\t\t\t\tdata-accordion-index=\"0\" data-title=\"what-are-the-uk-dividend-tax-rates-for-2026-27\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon bdt-flex-align-right\"\n\t\t\t\t\t\t\t\t\taria-hidden=\"true\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-closed\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-opened\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<span role=\"heading\" class=\"bdt-ep-title-text bdt-flex-inline bdt-flex-middle\" >\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat are the UK dividend tax rates for 2026\/27?\t\t\t\t\t\t\t<\/span>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"bdt-ep-accordion-content bdt-accordion-content\">\n\t\t\t\t\t\t\t<p><span class=\"NormalTextRun SCXW247567151 BCX8\">For 2026\/27, dividends above the\u00a0<\/span><span class=\"NormalTextRun SCXW247567151 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW247567151 BCX8\">500 allowance are taxed at 10.75% in the basic-rate band, 35.75% in the higher-rate band and 39.35% in the additional-rate band. The basic and upper rates each rose 2 points from 6 April 2026.<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-item\">\n\t\t\t\t\t\t<div\t\t\t\t\t\t\tclass=\"bdt-ep-accordion-title bdt-accordion-title bdt-flex bdt-flex-middle bdt-flex-between\" id=\"bdt-ep-accordion-are-dividends-taxable-in-the-uk\"\n\t\t\t\t\t\t\tdata-accordion-index=\"1\" data-title=\"are-dividends-taxable-in-the-uk\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon bdt-flex-align-right\"\n\t\t\t\t\t\t\t\t\taria-hidden=\"true\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-closed\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-opened\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<span role=\"heading\" class=\"bdt-ep-title-text bdt-flex-inline bdt-flex-middle\" >\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tAre dividends taxable in the UK? \t\t\t\t\t\t\t<\/span>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"bdt-ep-accordion-content bdt-accordion-content\">\n\t\t\t\t\t\t\t<p><span data-contrast=\"auto\">Yes. Dividends from UK company shares are taxable income, but the first\u00a0\u00a3500 each year is covered by the dividend allowance and taxed at 0%. Dividends above\u00a0\u00a3500 are taxed at the dividend rates. Dividends held inside an ISA stay tax-free and do not count towards the allowance.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p><p><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-item\">\n\t\t\t\t\t\t<div\t\t\t\t\t\t\tclass=\"bdt-ep-accordion-title bdt-accordion-title bdt-flex bdt-flex-middle bdt-flex-between\" id=\"bdt-ep-accordion-what-is-the-uk-dividend-allowance\"\n\t\t\t\t\t\t\tdata-accordion-index=\"2\" data-title=\"what-is-the-uk-dividend-allowance\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon bdt-flex-align-right\"\n\t\t\t\t\t\t\t\t\taria-hidden=\"true\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-closed\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-opened\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<span role=\"heading\" class=\"bdt-ep-title-text bdt-flex-inline bdt-flex-middle\" >\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat is the UK dividend allowance?\t\t\t\t\t\t\t<\/span>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"bdt-ep-accordion-content bdt-accordion-content\">\n\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW118971483 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW118971483 BCX8\">The dividend allowance is\u00a0<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">500 for 2026\/27, unchanged from 2025\/26. The first\u00a0<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">500 of dividends each year is taxed at 0%. It is a nil-rate band, not a deduction, so it still uses up\u00a0<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">500 of whichever rate band your income sits in. It was\u00a0<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">\u00a3<\/span><span class=\"NormalTextRun SCXW118971483 BCX8\">5,000 in 2017\/18.<\/span><\/span><span class=\"EOP SCXW118971483 BCX8\" data-ccp-props=\"{&quot;335551550&quot;:0,&quot;335551620&quot;:0}\">\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-item\">\n\t\t\t\t\t\t<div\t\t\t\t\t\t\tclass=\"bdt-ep-accordion-title bdt-accordion-title bdt-flex bdt-flex-middle bdt-flex-between\" id=\"bdt-ep-accordion-how-does-hmrc-know-my-dividend-income\"\n\t\t\t\t\t\t\tdata-accordion-index=\"3\" data-title=\"how-does-hmrc-know-my-dividend-income\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon bdt-flex-align-right\"\n\t\t\t\t\t\t\t\t\taria-hidden=\"true\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-closed\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-opened\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<span role=\"heading\" class=\"bdt-ep-title-text bdt-flex-inline bdt-flex-middle\" >\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tHow does HMRC know my dividend income? \t\t\t\t\t\t\t<\/span>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"bdt-ep-accordion-content bdt-accordion-content\">\n\t\t\t\t\t\t\t<p><span class=\"TextRun SCXW43281987 BCX8\" lang=\"EN-GB\" xml:lang=\"EN-GB\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW43281987 BCX8\">HMRC has no automatic feed of dividends from private companies, so the duty to report sits with you. You declare them on a\u00a0<\/span><span class=\"NormalTextRun ContextualSpellingAndGrammarErrorV2Themed SCXW43281987 BCX8\">Self Assessment<\/span><span class=\"NormalTextRun SCXW43281987 BCX8\">\u00a0return, or by asking HMRC to adjust your tax code for smaller amounts. HMRC can cross-check against company filings, bank\u00a0<\/span><span class=\"NormalTextRun SCXW43281987 BCX8\">data<\/span><span class=\"NormalTextRun SCXW43281987 BCX8\">\u00a0and dividend vouchers, so under-reporting carries real risk.<\/span><\/span><span class=\"EOP Selected SCXW43281987 BCX8\" data-ccp-props=\"{}\">\u00a0<\/span><\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t\t<div class=\"bdt-ep-accordion-item\">\n\t\t\t\t\t\t<div\t\t\t\t\t\t\tclass=\"bdt-ep-accordion-title bdt-accordion-title bdt-flex bdt-flex-middle bdt-flex-between\" id=\"bdt-ep-accordion-whats-changing-after-202627\"\n\t\t\t\t\t\t\tdata-accordion-index=\"4\" data-title=\"what-039-s-changing-after-2026-27\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon bdt-flex-align-right\"\n\t\t\t\t\t\t\t\t\taria-hidden=\"true\">\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-closed\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-plus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H272V64c0-17.67-14.33-32-32-32h-32c-17.67 0-32 14.33-32 32v144H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h144v144c0 17.67 14.33 32 32 32h32c17.67 0 32-14.33 32-32V304h144c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"bdt-ep-accordion-icon-opened\">\n\t\t\t\t\t\t\t\t\t\t\t<svg aria-hidden=\"true\" class=\"fa-fw e-font-icon-svg e-fas-minus\" viewBox=\"0 0 448 512\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\"><path d=\"M416 208H32c-17.67 0-32 14.33-32 32v32c0 17.67 14.33 32 32 32h384c17.67 0 32-14.33 32-32v-32c0-17.67-14.33-32-32-32z\"><\/path><\/svg>\t\t\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t<\/span>\n\t\t\t\t\t\t\t\n\t\t\t\t\t\t\t<span role=\"heading\" class=\"bdt-ep-title-text bdt-flex-inline bdt-flex-middle\" >\n\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\tWhat&#039;s Changing After 2026\/27?\t\t\t\t\t\t\t<\/span>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"bdt-ep-accordion-content bdt-accordion-content\">\n\t\t\t\t\t\t\t<p class=\"isSelectedEnd\">As at 6 July 2026, no further changes to dividend tax rates or the dividend allowance have been announced beyond 2026\/27. The most recent change took effect on 6 April 2026, when the basic and higher dividend rates rose to 10.75% and 35.75%; the additional rate stayed at 39.35% and the allowance stayed at \u00a3500. Clients should still keep profit-extraction planning under review \u2014 future changes to income tax, allowances, Corporation Tax or dividend rules at the next fiscal event could shift the most efficient mix of salary and dividends.<\/p>\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>UK Dividend Tax Calculator 2026\/27 Use this free UK dividend tax calculator to work out the exact 2026\/27 dividend tax position for [&hellip;]<\/p>\n","protected":false},"author":41,"featured_media":39294,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_tocer_settings":[],"footnotes":""},"categories":[67,6,69],"tags":[18,11,20],"class_list":["post-39201","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-accountants","category-blog","category-tax-advisers","tag-accounting","tag-compliance","tag-tax-advisers"],"acf":[],"_links":{"self":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39201","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/users\/41"}],"replies":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/comments?post=39201"}],"version-history":[{"count":32,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39201\/revisions"}],"predecessor-version":[{"id":39520,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/posts\/39201\/revisions\/39520"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/media\/39294"}],"wp:attachment":[{"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/media?parent=39201"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/categories?post=39201"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/figsflow.com\/uk\/wp-json\/wp\/v2\/tags?post=39201"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}