tax question

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Tax is taxing as far as I am concerned is anyone else finding this tricky?<BR><BR>can anyone tell me when you increase the 22% tax band with pension allowances or charity contribututions if the increase can be used to reduce the higher 32.5% tax band for dividend income. If you do this do you just use whatever amount you have left before reaching the £31,400 higher rate.<BR> I have not found an example that illustrates this in my text book. I am asuming you can but would like to know if I am correct.

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    tax question

    to the extent that the dividend income falls within the extended basic rate band, it is taxed at 10%, i.e. no further tax payable.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    tax question

    just a thought on the difficulty of tax, if it was that easy the punters would do it for themselves and people like me would lose money.

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