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32% tax on dividends.. Is this rigjht!!
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Si posse, recte, si non, quocumque modo rem -
Don't forget the 10% tax credit.
And they say the system is needlessly complicated.Will work inside IR35. Or for food.Comment
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Originally posted by Bear View Postoh and
right"You’re just a bad memory who doesn’t know when to go away" JRComment
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Originally posted by Flat Eric View Posttought crowd
it is 32.5% on any dividends received above threshold. Although you get a 10% tax credit so you pay a rate of 22.5% on dividends you take from YourCo.Si posse, recte, si non, quocumque modo remComment
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also from the same article
If you pay tax at or below the basic rate
You have no tax to pay on your dividend income because the tax liability is 10 per cent - the same amount as the tax credit - as shown in the tables.
If you pay tax at the higher rate
You pay a total of 32.5% tax on dividend income that falls above the basic rate Income Tax limit (£34,600 for the 2007-2008 tax year). But because the first 10 per cent of the tax due on your dividend income is already covered by the tax credit, in practice you owe only 22.5 per cent.
Note that dividend income, like savings income, is taxed after your non-savings income (for example, wages and self-employment profit) at your highest tax rate. If it falls both sides of the £34,600 higher rate tax bracket, it will be taxed partly at 10 per cent (and covered by the tax credit) and partly at 32.5 per cent (less the 10 per cent tax credit).Cenedl heb iaith, cenedl heb galonComment
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