I think I know the answer to this but just want to confirm it...
I go down the route of min wage plus dividends to the 40% threshold each year.
I have a small pension lying around with £28k in it. If I want to take the whole lot as a lump sum 25% is tax free (£7k) so they deduct "emergency tax" from the remaining £21k leaving me with around £22k in my pocket.
However my question is... Am I right in thinking that when it comes to my SA the extra £22k will be counted as income therefore my dividends will be liable to the upper tax limit and I'l get a nice big tax bill for 2015/16??
I go down the route of min wage plus dividends to the 40% threshold each year.
I have a small pension lying around with £28k in it. If I want to take the whole lot as a lump sum 25% is tax free (£7k) so they deduct "emergency tax" from the remaining £21k leaving me with around £22k in my pocket.
However my question is... Am I right in thinking that when it comes to my SA the extra £22k will be counted as income therefore my dividends will be liable to the upper tax limit and I'l get a nice big tax bill for 2015/16??
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