Directors Dividends
MVT
Registered Posts: 41 Regular contributor ⭐
Good morning,
I am having a mental block at the moment whilst looking at one of my directors Tax returns from previous years.
On his Personal Tax Computation it shows the following:
Income
Employment £x amount
UK Dividends £x Amount
less pa £6475
When Calculating the tax bourne for some reason I thought you calculate tax on employment income differently to Dividends income. In the SA I am looking at it has been lumped together i.e.
nil @10% starting rate
x amount @ 10% Dividends rate
x amount @ 20% basic rate
x amount @ 32.5% Higher dividends rate
Does this look right?
Thank you
I am having a mental block at the moment whilst looking at one of my directors Tax returns from previous years.
On his Personal Tax Computation it shows the following:
Income
Employment £x amount
UK Dividends £x Amount
less pa £6475
When Calculating the tax bourne for some reason I thought you calculate tax on employment income differently to Dividends income. In the SA I am looking at it has been lumped together i.e.
nil @10% starting rate
x amount @ 10% Dividends rate
x amount @ 20% basic rate
x amount @ 32.5% Higher dividends rate
Does this look right?
Thank you
0
Comments
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Right... apologies I've answered my own question.
Of course Dividends is always taxed as the highest part of savings income!!0