Hi all,
First time poster.
I'm self employed and my earnings are a mixture of salary and dividend. I'm trying to work out my tax bill for 2016/17.
Here’s my earnings for the tax year 2016/17:
Salary: £11,000
Dividend: £34,353
Total income: £45,353
Now I know the salary part of my earnings has incured roughly £350 in NIC's etc which have already been paid. Therefore it's the dividend part I'm trying to work out.
Here's my calculation:
First £5,000 at 0% = £0.00
Next £27,000 at 7.5% = £2025.00
Remaining £2,353 at 32.5% = £764.72
Total Dividend Tax: £2789.72
I also pay student loan (plan 1), which I’ve calculated below.
Student loan contribution (threshold for 16/17 is £17,495)
£45,353 - £17,495 = £27,858
9% of £27,858 = £2,507.22
£2,789.72 + £2,507.22 = £5,296.94
Could you tell me if that’s correct, as a figure I had in my head previously was closer to £8000?
Thanks in advance.
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