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Still confused:
So - I take 10k salary and 30k in dividends, how much tax we looking at ?
10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
The greatest trick the devil ever pulled was convincing the world that he didn't exist
10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
And this is why I said ask your accountant ...
"You’re just a bad memory who doesn’t know when to go away" JR
10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
I think its £11.5k personal allowance from next April.
The basic rate of tax on dividends is 7.5%, not 7%.
Originally posted by TheCyclingProgrammerView Post
I think its £11.5k personal allowance from next April.
The basic rate of tax on dividends is 7.5%, not 7%.
Correct, confirmed as 11.5k and agreed on the dividend. I've checked an email from my accountant I was just providing a quick example. That in itself illustrates why an accountant is important; they're paid to keep on top of this sort of thing so that you can carry on fee-earning.
The greatest trick the devil ever pulled was convincing the world that he didn't exist
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