Hi experts,
Am I correct in thinking that Dividend earnings do not affect the availability of starter savings allowance? If so, are you able to send a link eg from HMRC that shows this?
My client wishes to do the following as she has substantial savings income. Exact value unknown, but likely to be approaching £6k. Does the below comp work please, and if not, why not?
12,500 - Salary from their business (fully covered by 2020/21 personal allowance)
6,000 - interest income (fully covered by starter savings allowance of £5,000 (as earned income is not above £12.5k) plus £1,000 personal savings allowance)
31,500 - dividend income (£2,000 is covered by Dividend allowance, remainder taxed at 7.5%)
50,000 - total income
Tax to pay:
Nil on salary
Nil on Interest
£2,212.50 - tax to pay on £29,500 of dividends
Any dividends over this value would be taxed at 32.50%.
Your help is much appreciated!
- Home
-
Tax News
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice and Methods
- Professionals in Practice & Industry
- General
- TaxationWeb
-
Tax Articles
- Budgets and Autumn Statements
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings and Investments, Pensions and Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations & Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practice & Methods
- Professionals in Practice & Industry
- General
- Tax Tips
-
Tax Forum
- Income Tax
- Business Tax
- PAYE and Payroll Taxes, National Insurance, NICs
- Company Taxation
- Savings & Investments, Pensions & Retirement
- Capital Gains Tax, CGT
- Property Taxation
- Inheritance Tax, IHT, Trusts & Estates, Capital Taxes
- Tax Investigations and Enquiries
- VAT & Excise Duties
- Stamp Duty, Stamp Duty Land Tax, SDLT
- International Tax
- HMRC Administration, Practices & Methods
- Professionals in Practice & Industry
- General
- Tax Jobs
- Get in Touch