Quick And Dirty Calculation

[Bumfluff]

I'm trying to work out my self assessment liability for 08-09 as I want to reduce payment on account due Jan 31 09. My 08-09 figures are below, tax on sal PAYE, tax on interest at source not sure what to do with divs though,

Salary £12,000 Tax paid at source
Interest £10,035 22% tax paid at source
Divs £20,000

Total £42,035

Yes have asked accountant but waiting for a reply, anyone any ideas ?

[Alan @ BroomeAffinity]

On the basis that the tax has been deducted properly from your salary, you will have an additional £1130 to pay.

Nice chunk of interest, BTW

[Nixon Williams]

Assuming that the interest is the gross amount, (tax is normally deducted at 20% BTW) and that the dividend is net, the gross income would be as follows:

Salary £12,000
Interest £10,035
Dividends £22,222

Total £44,257

Less Personal allowance of £6035 & HR band of £34800 leaves £3422 subject to Higher Rate (HR) tax.

The HR tax on the dividends is effectively 22.5% of the gross, so this would leave tax due of £770

As previously said, this assumes that the correct PAYE has been deducted from the salary and that the interest above is gross.

Alan

[Bumfluff]

Assuming that the interest is the gross amount, (tax is normally deducted at 20% BTW) and that the dividend is net, the gross income would be as follows:

Salary £12,000
Interest £10,035
Dividends £22,222

Total £44,257

Less Personal allowance of £6035 & HR band of £34800 leaves £3422 subject to Higher Rate (HR) tax.

The HR tax on the dividends is effectively 22.5% of the gross, so this would leave tax due of £770

As previously said, this assumes that the correct PAYE has been deducted from the salary and that the interest above is gross.

Alan

So that means I can have an income of £40,835 (allowance £6035+ HR £34800) before I need to pay 40% on anything above that ?

[Gonzo]

So that means I can have an income of £40,835 (allowance £6035+ HR £34800) before I need to pay 40% on anything above that ?

That sounds about right to me, not taking into account any "special circumstances" that might reduce your allowance - such as any BIKs declared on your P11D, that sort of thing. I don't know how student loan repayments effect people these days - they might do, but then again, I am not an accountant.