What are the dividend tax rates in the UK?

How to calculate the tax on dividends

To calculate how much tax you need to pay on dividends, simply:

add your income from dividends to your all other income (employment, rental income, etc.)
then work out your income tax band
you’ll pay tax on all your dividends based on what is your highest tax band.

The dividend tax rates in 2019/20

This year the dividend tax rates are:

0% on the first £2,000 from dividends (this is called the Dividend Allowance)
0% if your total income is under the Personal Allowance (£12,500)
7.5% if you’re a basic rate taxpayer
32.5% if you’re a higher rate taxpayer
38.1% if you’re an additional rate taxpayer.

How about dividends from investments?

Rules are simple here:

zero tax on dividends from shares in an stocks & shares ISA
but: you do pay tax on dividends from any other shares you own, even if these dividends are reinvested into purchasing new shares – ask your broker or trading platform how they handle dividends from “income stocks”.

How TaxScouts works

1. Simple online tax assessment

Our online tax-bot will go over your tax situation and will make sure you won’t overpay your taxes.

2. Chat to human advisors

You can talk to one of our tax assistants at any time during the process when you have any questions.

3. We’ll sort your documents online

We’ll tell you exactly what documents you need and sort them for you online. You just upload them or snap a picture with your phone.

4. Everything gets prepared for you

Your certified accountant will go over your details & prepare your tax return for you to review. It will be filed on your behalf once you approve it.

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Who our service is for

First time tax filers

We have a simple online service that guides you through the entire process. Regardless of your reasons for doing your tax return we'll help you get it done right.

Construction workers

We'll prepare your self assessment and help to maximise your CIS tax refund. We have the lowest fees in the industry and you don't have to pay up front if you're eligible for a refund.

People living overseas

Our service allows people living abroad to prepare their income tax return online. We are able to process all returns regardless of your current country of residence.

Company directors

UK company directors are required to file their self assessment annually. TaxScouts handles this through a simple online process.

Landlords

Long Lets, Airbnb, Capital Gains. TaxScouts will sort out your self assessment and take away the worry of tracking all the recent tax changes.

Self-employed

TaxScouts ensures the self employed don't overpay on their taxes. We'll help you benefit from all the tax breaks and deductions that can be applied to your return.

And for everyone else who needs to do their self assessment

At TaxScouts we appreciate that tax returns are highly individual. Before you get assigned an accountant we make sure to understand your circumstances and help you build your optimal tax profile.