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Divvie tax calculation update
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So it was pretty much what we exectedOriginally posted by Stevie Wonder BoyI can't see any way to do it can you please advise?
I want my account deleted and all of my information removed, I want to invoke my right to be forgotten. -
Originally posted by mudskipper View PostComment
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Originally posted by SimonMac View PostSo it was pretty much what we exectedComment
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Originally posted by jamesbrown View PostNope, the summer budget described the 5k as "tax free", so it was assumed to be an allowance, i.e. removed from the total dividend before the ordinary banding is applied. If it's zero-rated, it will count towards the basic rate band. Bottom line, you'll hit the higher rate band sooner than anticipated.Comment
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Originally posted by pr1 View Postthat's not what I assumed... perhaps that's the difference between pessimists and optimists
However, it's worth bearing in mind that this is just another set of "guidance". Until we see the actual legislation...Comment
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Originally posted by jamesbrown View PostOK, so that's worse than predicted. If it's not an allowance, it counts towards the basic rate band, and the total amount that can be taken is reduced accordingly before the higher rate band is reached.Comment
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Originally posted by mudskipper View PostThat's how I read it; wanted someone else to confirm! Some of the comments still seem to think it's tax free though?Comment
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Originally posted by jamesbrown View PostIt could still be argued to be "tax free", but in a conditional sense. It depends what you mean by tax free. You won't pay tax on the first 5k of dividends, regardless of your marginal rate. However, it will impact the rates at which you pay tax on other income (in particular, other dividend income, because that is the last slice); had this been an allowance, that would not be true.In Scooter we trustComment
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Originally posted by The Spartan View PostSo 11k salary, 5k tax free dividends plus 27k dividends @ 7.5% dividend tax to stay under the upper limit?Comment
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