Guide

When Is Dividend Tax Due? Payment Dates and Payments on Account

Written by James Whitfield · Last reviewed 19 October 2026 · Checked against 2026/27 HMRC rates

Directors who take most of their pay as dividends have no tax deducted during the year. The bill arrives in one go, and from the second year onwards HMRC also asks for advance payments towards the next year. This is where the first big shock usually comes from.

Quick answer

Dividend tax for 2026/27 is paid through Self Assessment by 31 January 2028.¹ If your bill is £1,000 or more and less than 80% of your tax was collected at source, you also make payments on account: each one half of the previous year's bill, due on 31 January and 31 July.² A director with a £12,570 salary and £50,100 of dividends owes £8,432 of dividend tax for 2026/27, so in the first year £12,648 is due on 31 January 2028 (the bill plus a £4,216 payment on account) and £4,216 more on 31 July 2028. Dividends of £10,000 or less can instead be collected through your tax code if you do not file a return.³

Key facts

2026/27 tax year: 6 April 2026 to 5 April 2027. Online return and payment: 31 January 2028.¹
Payments on account: two, each usually half last year's bill, due 31 January and 31 July.²
None needed if last year's bill was under £1,000, or over 80% of your tax was paid at source.²
Over £10,000 of dividends: Self Assessment; register by 5 October 2027 if new.³
Tax already collected through PAYE is not part of the Self Assessment bill.

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The key dates for 2026/27 dividends

Dividends received	6 April 2026 to 5 April 2027
Register for Self Assessment (first year)	5 October 2027
Paper return	31 October 2027
Online return, balance and first payment on account	31 January 2028
Second payment on account	31 July 2028

Deadlines from GOV.UK.¹³ Interest runs on anything paid late.

How payments on account work

Payments on account are advance payments towards your next tax bill. Each is usually half of the tax you owed for the previous year, due by midnight on 31 January and 31 July.² When the next year's return is filed, any shortfall is paid as a balancing payment on the following 31 January, or any overpayment is refunded or set off.

You do not have to make them if last year's bill was less than £1,000, or if you paid more than 80% of your tax outside Self Assessment, for example through PAYE.² Directors living on dividends rarely meet the 80% test, because a £12,570 salary has no tax deducted.

Worked example: a director's first January bill

Ravi pays himself a £12,570 salary and £50,100 of dividends in 2026/27, his first year filing. The salary is covered by the Personal Allowance, so all his tax is dividend tax.

Dividends	£50,100.00
Dividend allowance (0%)	£500.00
£37,200 at 10.75%	£3,999.00
£12,400 at 35.75%	£4,433.00
2026/27 dividend tax	£8,432.00
First payment on account for 2027/28 (50%)	£4,216.00
Due 31 January 2028	£12,648.00
Second payment on account, due 31 July 2028	£4,216.00

If Ravi's 2027/28 dividends and tax are the same, the two £4,216 payments cover that year and the January 2029 balancing payment is nil.

Setting aside about 17% of each dividend covers a normal year at this level (£8,432 ÷ £50,100). In the first year Ravi needs about 25%, because the January payment is 150% of one year's bill.

Can you reduce payments on account?

Yes, if you expect the next year's bill to be lower, for example because you plan smaller dividends. You can apply to reduce them through your online account or form SA303. If you reduce them too far, HMRC charges interest on the shortfall.

If you have a job or pension taxed through PAYE and dividends of £10,000 or less, you may avoid Self Assessment altogether by asking HMRC to collect the tax through your tax code.³

Estimate your bill

Enter salary and dividends to see 2026/27 dividend tax.

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Dividends and Self Assessment Dividend tax through your tax code Salary and dividend split 2026/27 Which tax year a dividend falls in

Sources & references

Every headline figure in this guide is drawn from the official HMRC and GOV.UK sources below and reflects the confirmed 2026/27 rates. Each link opens the relevant official page in a new tab.

Self Assessment tax returns: deadlines ↗ https://www.gov.uk/self-assessment-tax-returns/deadlines
Understand your Self Assessment tax bill: payments on account ↗ https://www.gov.uk/understand-self-assessment-bill/payments-on-account
Tax on dividends: how to report tax on dividends ↗ https://www.gov.uk/tax-on-dividends/how-to-report-tax-on-dividends
Tax on dividends ↗ https://www.gov.uk/tax-on-dividends

Verified against published UK government guidance.

Frequently asked questions

When do I pay tax on dividends received in 2026/27?

By 31 January 2028 through Self Assessment, along with any first payment on account for 2027/28. If your dividends are £10,000 or less and you do not file a return, HMRC can collect the tax through your tax code instead.

Will HMRC ask for next year's dividend tax in advance?

Usually, yes. If your bill is £1,000 or more and less than 80% of your tax was paid at source, you make payments on account: two advance payments, each half of last year's bill, on 31 January and 31 July.

Why is my first dividend tax bill so large?

Because the first 31 January payment covers the whole year's tax plus a first payment on account of half of it again. A director with £50,100 of dividends and a £12,570 salary pays £12,648 on 31 January 2028.

Do I make payments on account if I also have a salary taxed through PAYE?

Not if more than 80% of your total tax was collected through PAYE or other deductions at source, or if your Self Assessment bill is under £1,000.

Can I pay dividend tax monthly?

You can pay towards a future bill in advance through a budget payment plan, or set money aside each month. The legal due dates stay 31 January and 31 July.

Disclaimer: General information about UK tax for 2026/27, not personal tax advice. Figures assume England, Wales or Northern Ireland income tax bands unless stated.