Contractor tax calculator for annual withdrawal of salary/dividends from your own LTD company for 2019/20 and 2018/19.
Estimate and compare the budget dividends tax changes and the impact to you.
This tax calculator is for you, if you
--- are a contractor operating via UK LTD company
--- are your own employee of your company
--- are interested in knowing what the recent budget means in tax terms, for contractor dividends
--- want a quick projection/view of salary & dividends budget change impact of HMRC tax year 2019 / 2020 vs. 2018 / 2019
--- want to estimate the total tax you will have to pay for company and individual combined based upon your scenarios. This includes corporation tax, employer NI, salary tax, employee NI
Salary tax applies to England, Wales and Northern Ireland.
If you like our app please rate us.
For any feedback or suggestions for improvements please write to email@example.com
*** This calculator is for illustrative purpose only, and is not a substitute for professional advice.
Updated for tax year 2019/20
Ratings and Reviews
Brilliant idea - tax on dividends looks high
Hi. Fabulous app, well conceived and designed.
I'm sure you have tax on dividends too high. I've checked against other software and 17/18 tax on dividends is 7.5% of dividends above 5k in the basic rate band? Could you issue a fix?
Developer Response ,
Thank you for your feedback for our app and comment regarding the dividend tax calculation. We reviewed our implementation and can confirm that the following HMRC guidelines have been followed to our calculations:
For the 2017/18 tax year, the personal allowance is £11,500.
If you earn over £100,000 during the tax year, your personal allowance decreases by £1 for every £2 you earn above this threshold. If your total income is £123,000 or more, the personal allowance is zero.
There is a dividend allowance on the first £5,000 of dividend income. However, this allowance lies within your existing tax bands when calculating your overall tax liability.
The current rates of dividend tax (for 2017/18) are 7.5% (basic rate), 32.5% (higher rate), and 38.1% (additional rate).
Some tax calculators you find on the web may not strictly apply the above, which could explain any differences.
While reviewing we found a small incorrectness of the dividend tax calculation in the additional tax band, which is being corrected.
Please do contact us on firstname.lastname@example.org in case of any queries and we'd be happy to help.
Corp set at 17.5%.....
Developer Response ,
Corporation tax in 2019/20 is 19% of the corporation profit. Profit is gross revenue minus salary paid, pension payments and expenses. The app displays the corporation tax as a percentage of gross revenue to illustrate the impact of the three parameters. If salary paid, pension payments and expenses are zero, the corporation tax percentage displayed is 19% or less otherwise.
The comparison of this year vs next year is very useful to know what to take out before Apr
Up to six family members will be able to use this app with Family Sharing enabled.