Tax help

HussainA

I am a new mIP and I am compelting a tax return for my client who received dividend in year net of paye. The client is high tax rate payer so could someone conferm that i am right to use net dividend at 40% for the return computations. Also would the bank interrest be taxed at 40% rates.Thank you.

Bluewednesday

Should you really be doing this? This sort of question is basic knowledge, I don't mean to be discouraging but you should already know this if you are licenced to do tax returns.

Dividends are taxed at 32.5% if they fall within the 40% band.

Steve Collings

Annette is right - these questions are really page 1 stuff and I am surprised that you have obtained a licence to prepare tax work when really you should undertake additional training in the area of tax. You should not be preparing individual tax returns if you don't know the higher rate of dividends or bank interest.

You may already know this but please make sure you tax income as follows:

non-savings (i.e. any income from trade/employment)
savings income (bank interest)
dividends

As an MIP you have a duty of care to your client and this means only doing work for them that you are competent enough to carry out. I would implore you to get additional training in the area of tax because it gets much more complicated than dealing with higher rate dividends.

Kind regards
Steve

Hasan.Ahmet

Tax Help only?

"compelting"
"conferm"
"interrest"