Updated for 2026/27

Available dividends calculator

Before deciding how much to distribute, see how much the company actually has available: profit minus salary, employer NI, pension and corporation tax leaves the distributable pool.

Updated for 2026/27. Uses UK corporation tax, dividend tax and PAYE assumptions. Estimates only — not tax advice.

Calculator checked against GOV.UK and HMRC rules on (how we check).

Calculate company tax Read the guides
Distributable profitPost-tax company cashSalary deductionCorp tax effect
2026/27 tax year Company profit to personal take-home Salary plus dividends Retained cash shown

Limited company tax calculator

Company tax estimate

Adjust inputs below — results update instantly.

Tax year 2026/27
How do you want to enter company income?
£

Enter profit before director salary, pension contributions and corporation tax.

£

Annual profit used in calculations = monthly profit × 12.

£
£
Expenses exceed estimated turnover — check your inputs.
£
£
Expenses exceed estimated turnover — check your inputs.
£
£

Amount you plan to withdraw from available post-tax company profit.

Selected dividends exceed available post-tax company profit.
£
£
£47,749 personal take-home / year £3,979/mo
Personal take-home is based on salary and dividends withdrawn. Post-tax profit not withdrawn is retained company cash.
Monthly net
£3,979
Total tax
£18,450
Effective rate
24.6%
Personal take-home£47,749
Dividend tax£4,821
Employer NI£1,136
Corporation tax£12,493
Company pension£0
Retained company cash£8,801
Show detailed breakdown ▼
Director salary£12,570.00
Employer National Insurance£1,135.50
Corporation tax£12,493.04
Salary income tax£0.00
Employee National Insurance£0.00
Dividend tax£4,821.25
Retained company cash£8,801.46
Personal take-home£47,748.75
Effective tax rate24.60%
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HMRC 2026/27 · Methodology
Quick answer

A company can pay dividends only out of profits available for the purpose: its accumulated realised profits after tax, less accumulated realised losses. Cash in the bank is not the test.

Updated for 2026/27. Written and reviewed by James Whitfield against current GOV.UK and HMRC guidance · Editorial standards · Methodology. Estimates for planning only — not tax, accounting or financial advice.

Figures reviewed for the 2026/27 tax year. Source: GOV.UK.

About this calculator

Available dividends calculator: what it covers

This calculator works out how much a limited company can lawfully pay as dividends. Dividends may only be paid from distributable reserves — the profit remaining after corporation tax has been charged — so the figure is driven by accumulated post-tax profit, not by turnover or the current bank balance. If reserves are insufficient, the amount available to distribute is nil regardless of how much cash is present.

Paying a dividend that is not covered by distributable profit creates an unlawful or ultra vires dividend, which can have to be repaid and may store up problems if the company later runs into difficulty. The calculator helps you see the safe ceiling before you declare anything.

Once you know the lawful amount, the result also reflects the personal tax side: the first £500 of dividends is covered by the dividend allowance, and dividends above it are taxed at 10.75%, 35.75% or 39.35% depending on which income band they fall in. Dividends carry no National Insurance.

How it works

How to work out what you can pay

  1. Start with the reserves brought forward: the accumulated post-tax profits of earlier years less any dividends already paid and any losses.
  2. Add this year's profit after salary, employer NI, pension contributions and Corporation Tax. The Corporation Tax must be provided for even though it is not paid until nine months after the year end.
  3. Deduct dividends already paid in the year. What is left is the most the company can distribute.4
  4. Check the figure against accounts: final accounts for a final dividend, or up-to-date management accounts for an interim dividend paid during the year.
  5. Record each dividend with a board minute and a dividend voucher, and pay shareholders of the same share class in proportion to their shares.
More worked examples

A first-year company: £40,000 of profit

No reserves brought forward. The director takes the usual salary.

Profit after salary and employer NI £26,294.50
Corporation Tax to provide for £4,995.95
Available for dividends £21,298.55

The bank balance may be higher than this, because the Corporation Tax has not been paid yet. That money is already owed to HMRC.

A year after a loss

The company made a loss in an earlier year and starts this year with a deficit of £15,000 on its profit and loss reserve (assume any tax relief for that loss has already been used). This year it makes £50,000 before salary.

This year's post-tax profit £29,398.55
Less deficit brought forward −£15,000
Available for dividends £14,398.55

The old loss has to be made good before anything can be distributed. Our calculator shows only this year's profit, so subtract any deficit yourself.

Reserves built up over earlier years

A company that left £20,000 of post-tax profit in reserves last year, and makes £60,000 before salary this year.

Reserves brought forward £20,000
This year's post-tax profit £37,498.55
Available for dividends £57,498.55
Of which fits in the basic-rate band on a £12,570 salary £37,700

Having reserves does not mean taking them. Spreading them over years when your other income is lower can keep more of the dividends at 10.75%.

Mistakes and edge cases

What makes a dividend unlawful or costly

Paying from cash, not reserves
A healthy bank balance can hide unpaid Corporation Tax, VAT and supplier bills. The legal test is distributable profits under the Companies Act 2006.4
No accounts to back it
An interim dividend needs accounts showing enough profit at the time. A guess at the year-end result is not enough.
Unlawful dividends
A shareholder who knew, or had reasonable grounds to believe, that a dividend broke the rules is liable to repay it.5 HMRC may also treat it as a loan or as pay.
Unequal amounts without separate share classes
Shareholders with the same class of share get the same amount per share. Different amounts for different people need different share classes set up properly.
Common questions

Available dividends calculator — FAQs

What counts as distributable profit for dividends?
Distributable profit is the accumulated realised profit left after corporation tax, carried forward as reserves. Dividends can only be paid from this figure, so a company must have enough post-tax profit — not just cash in the account — before it declares a dividend.
What happens if I pay a dividend with insufficient reserves?
A dividend not covered by distributable profit is unlawful, sometimes called an ultra vires or illegal dividend. A shareholder who knew, or ought to have known, that reserves were inadequate can be required to repay it, and the payment may be reclassified, so the reserves check should always come first.
What paperwork does a dividend need?
Each dividend should be supported by a board minute recording the decision to declare it and a dividend voucher showing the date, company, shareholder and amount. Keeping this documentation demonstrates the dividend was properly declared out of available reserves.
How much dividend tax will I pay on what I take?
The first £500 each year is tax-free under the dividend allowance. Above that, dividends 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, with no National Insurance due on dividend income.
Sources & references

Where these figures come from

The rates and rules on this page are drawn from the official UK government sources below, using the confirmed 2026/27 figures. Each link opens the relevant HMRC, GOV.UK or Companies House page in a new tab.

  1. Taking money out of a limited company www.gov.uk/running-a-limited-company/taking-money-out-of-a-limited-company
  2. Tax on dividends www.gov.uk/tax-on-dividends
  3. Accounts and tax returns for private limited companies www.gov.uk/prepare-file-annual-accounts-for-limited-company
  4. Companies Act 2006, section 830: distributions to be made only out of profits available www.legislation.gov.uk/ukpga/2006/46/section/830
  5. Companies Act 2006, section 847: consequences of unlawful distribution www.legislation.gov.uk/ukpga/2006/46/section/847
Verified against published UK government guidance.
Power tools

More calculators

Limited company tax calculator
Company profit to take-home: Corporation Tax, employer NI, salary and dividend tax in one view.
Corporation tax calculator 2026/27
The company's bill at 19%, 25% or with marginal relief, and when it is due.
Salary vs dividend calculator 2026/27
Compare taking money as salary or dividends and see which salary leaves you the most.
Director salary calculator 2026/27
£0, £5,000, £9,100 or £12,570: what each salary costs the company and saves you.
Dividend tax calculator 2026/27
Dividend tax on top of your salary, band by band, after the £500 allowance.
Retained profit calculator 2026/27
What stays in the company when you take less than all the profit, and the tax that defers.
Director take-home pay calculator 2026/27
What reaches your bank account each year and month, and what to set aside for January.
Employer NI calculator for directors 2026/27
Employer NI on a director's salary, and when Employment Allowance cancels it.
Practical guides

Limited company guides

Limited Company Tax in Scotland 2026/27: Salary, Dividends and Corporation Tax
In Scotland, corporation tax is the same 19%–25% as the rest of the UK and dividends are taxed at the UK rates of 10.75%, 35.75% and 39.35%. Only a director's salary uses Scottish income tax bands. 2026/27 examples.
Corporation Tax Rates 2026/27: 19%, 25% and Marginal Relief
Corporation tax rates 2026/27: 19% on profits up to £50,000, 25% over £250,000, marginal relief between (26.5% marginal rate). £100,000 profit pays £22,750. Table and examples.
Optimal Salary and Dividend Split for Directors 2026/27
How to calculate the tax-efficient salary and dividend combination for a limited company director in 2026/27, covering corporation tax, income tax, NI and the dividend allowance.
Salary vs Dividends 2026/27: The Optimal Split for Company Directors
The tax-efficient salary vs dividends split for UK company directors in 2026/27: a £12,570 salary, then dividends taxed at 10.75%. Corporation tax, the £500 dividend allowance, employer NI and a full worked example extracting £50,000.
Director's Loan Account 2026/27: s455 at 35.75%, 30-Day Rule
Overdrawn director's loan account in 2026/27: s455 at 35.75% if not repaid 9 months and 1 day after year end, refundable later; £10,000 benefit-in-kind limit; 30-day rule.
Limited Company Allowable Expenses: A Practical Guide 2026/27
What a limited company can legitimately deduct as business expenses, reducing corporation tax. Covers running costs, director expenses, travel, equipment, and home office claims.
Getting set up

Business bank accounts

A limited company must keep its finances separate from personal accounts. These accounts are free to open.

Starling Business
Permanently free, no monthly fee. A fully licensed UK bank - eligible deposits are FSCS protected up to £120,000 per eligible depositor, per authorised bank (brands sharing one banking licence share one limit). A limited company's account is protected separately from your personal accounts. Accepts limited companies and sole traders. 0.7% on Post Office cash deposits.
Open an account →
Tide
Free to open. Built-in invoicing and expense tracking. 20p per outgoing transfer on the free tier (Tide Plus is £9.99/month). Funds are safeguarded as e-money, not FSCS protected. Usually has a new-account offer.
Open an account →
Mettle by NatWest
Free. Single-director limited companies only (max two owners, one account user). Includes FreeAgent bookkeeping at no extra cost. Funds are safeguarded as e-money, not FSCS protected. No cash deposits.
Open an account →
Registering at Companies House

Companies House now charges £100 to register a limited company online (up from £50 in February 2026). Same-day registration is £156, through software filing only (for example via a formation agent). You can register directly at gov.uk or through a formation agent.

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