Please help - this may be a basic question, but I'm confused at my accountants answer (not in plain speak!)
This tax year I will have a PAYE income of approx £32,000 made up of salary and pension - all taxed at 20% currently. I have also set up a ltd company and now freelance in what I do. I predict I will have dividends of approx £30,000.
My question is, how much of the dividend income should I set aside for dividend tax ?
Many thanks
Dividend Tax
3 posts • Page 1 of 1
Re: Dividend Tax
by maths on Thu Jul 21, 2011 7:55 pm
£32,000 - £7,475 = £24,525
Tax @ 20% = £4,905
Gross dividend £33,333 taxed: [£10,475 @ 10% + £22,858 @ 32.5%] - £3,333 = £8,476 - £3,333 = £5,143.
£5,143.
Tax @ 20% = £4,905
Gross dividend £33,333 taxed: [£10,475 @ 10% + £22,858 @ 32.5%] - £3,333 = £8,476 - £3,333 = £5,143.
£5,143.
- maths
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3 posts • Page 1 of 1
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