Director's Tax Bill Calculator: 31 January 2027
Written by James Whitfield · Reviewed by the LimitedCompanyTaxCalculator team · Last reviewed 29 October 2026
Calculator checked against GOV.UK and HMRC rules on (how we check).
Quick answer · checked 29 October 2026
Your January 2027 bill is your 2025/26 dividend tax (8.75%, 33.75% and 39.35% after the £500 allowance) 3, plus a first payment on account of half that bill if you have to make them 1. A director on £12,570 with £40,100 of dividends owes £4,065: £6,097.50 on 31 January 2027 and £2,032.50 on 31 July 2027.
How much will directors pay on 31 January 2027?
| Salary | Dividends | 2025/26 bill | 31 Jan 2027 | 31 Jul 2027 |
|---|---|---|---|---|
| £12,570 | £20,000 | £1,706.25 | £2,559.37 | £853.12 |
| £12,570 | £40,100 | £4,065 | £6,097.50 | £2,032.50 |
| £12,570 | £60,000 | £10,781.25 | £16,171.87 | £5,390.62 |
| £9,100 | £50,000 | £6,235.12 | £9,352.68 | £3,117.56 |
| £50,270 | £30,000 | £9,956.25 | £14,934.37 | £4,978.12 |
| £60,000 | £10,000 | £3,206.25 | £4,809.37 | £1,603.12 |
Computed by our calculator, first year of payments on account. The £60,000 row: 78.1% of the tax went through PAYE, under the 80% line, so payments on account still apply.
Paying late
5% of the unpaid tax at 30 days, 6 months and 12 months 4, plus interest at 7.75% a year from 9 January 2026 5. Budget 2026 announced more regular in-year payments from April 2029; that still needs legislation. All your company deadlines: limited company deadlines checklist.
Frequently asked questions
How much tax will I pay on my dividends in January 2027?
Your 2025/26 dividend tax, worked out at 8.75%, 33.75% and 39.35% after the £500 allowance, plus a first payment on account for 2026/27 if you have to make them. With a £12,570 salary and £40,100 of dividends that is £4,065, so £6,097.50 in total in your first year of payments on account.
Do directors have to make payments on account?
Usually, yes. Payments on account are due unless last year's Self Assessment bill was under £1,000 or more than 80% of your tax was collected through PAYE. A director on a small salary and larger dividends pays most of their tax through Self Assessment, so normally has to make them.
Why is my January bill one and a half times my tax?
In the first year, 31 January brings the whole of last year's bill and the first half of this year's payments on account. From the second year, January is the balancing payment for last year plus the first payment on account.
Does my salary go through Self Assessment too?
It goes on the return, but the tax on it is normally collected through PAYE on your payslip. The calculator assumes PAYE collected the right tax on your salary, so the Self Assessment bill is the dividend tax.
Can I reduce my payments on account?
Yes, if you expect your 2026/27 bill to be lower, for example because you'll take fewer dividends. You can ask HMRC to reduce them; if they turn out too low you pay interest on the difference.
What if I pay late?
Late payment penalties are 5% of the unpaid tax at 30 days, 6 months and 12 months, plus interest, 7.75% a year from 9 January 2026.
Related: director Self Assessment 2025/26 · dividend tax calculator · salary vs dividend calculator
Sources & references
- Understanding your Self Assessment tax bill: payments on account — GOV.UK
- Tax on dividends — GOV.UK
- Income Tax rates and allowances: current and past — GOV.UK
- Self Assessment tax returns: penalties — GOV.UK
- HMRC interest rates for late and early payments — GOV.UK
Sources last checked: 29 October 2026.