I just looked at the Divi Tax calculator: I entered 20k Sal 10k Net Divi. here are the results, how how can this make me a higher rate tax payer??
Dividend Tax Calculator Results
Gross dividend: £11,111.11
Total gross income: £31,111.11
You are a higher rate tax payer (limit is £37,400 ). Extra tax is payable on dividends
£ 0.00 of your gross dividend income is subject to further tax at 22.5 %
The extra tax to pay is £ 0.00 ( 0 % of net dividend).
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Calculation based on:
Salary (PAYE) £20000
Dividend £10000
Other Income £0
Tax Code 647L
Tax Year Fiscal Year 2010/11
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Dividend Tax Calculator Results
Gross dividend: £11,111.11
Total gross income: £31,111.11
You are a higher rate tax payer (limit is £37,400 ). Extra tax is payable on dividends
£ 0.00 of your gross dividend income is subject to further tax at 22.5 %
The extra tax to pay is £ 0.00 ( 0 % of net dividend).
--------------------------------------------------------------------------------
Calculation based on:
Salary (PAYE) £20000
Dividend £10000
Other Income £0
Tax Code 647L
Tax Year Fiscal Year 2010/11
--------------------------------------------------------------------------------
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