Dividend Calc

by **maths** on Fri Dec 16, 2011 8:03 pm

In view of the size of your taxable income you are not entitled to any personal allowance.

Your gross income is [£30,000 + £222,222] which is also your taxable income.

(the £222,222 is your net cash dividend of £200,000 grossed up to include the 1/9th tax credit ie [[£200,000 + £200,000 x 1/9]].

Your £30,000 is taxed at 20% ie £6,000

Your gross dividend of £222,222 is taxed at:
10% of £5,000 = £500
32.5% of £115,000 = £37,375
42.5% of £102,222 = £43,444

TOTAL £81,319
LESS Tax Credit of £22,222

Net tax liability on Dividend = £59,097.

by **AvocadoK** on Sat Dec 17, 2011 7:33 pm

The gross dividend is 222,222
Taxed at basic rate: (£35,000 less £30,000 used already) = £5,000 at 10% less 10% tax credit = nil
Taxed at higher rate: £115,000 at 32.5% less 10% credit = £25,875
Balance taxed at additional rate: £102,222.22 at 42.5% less 10% credit = £33,222
Total tax £59,097.

There won't be any personal allowance at this level of income.

AK