D · Glossary
Dividend
A distribution of company profits to shareholders — taxed at lower rates than salary.
A dividend is a distribution of company profits to shareholders. UK individuals pay 8.75% (basic), 33.75% (higher), or 39.35% (additional) on dividends after the £500 dividend allowance (2025/26).
Dividends are paid net of Corporation Tax — the company has already paid 19–25% on the profits before distributing.
Related terms
Stop dreading tax. Start ignoring it.
Get a fixed-fee quote in 60 seconds. No signup, no card, no sales call. We'll just tell you what it'll cost and how fast we can file it.