Personal tax is unfortunately getting ever more complicated, hence harder to give a simple guide to follow.
A few years ago it used to be (with ~£8k salary and nothing else) you could take ~£30k divis tax free, anything from there upwards suffered 25%. Only other thing to consider was student loan.
Now if you have ~£8k salary you can take ~£8k divis tax free, ~£25k at 7.5%, 32.5% from there until a bit higher, still have to consider student loan, then consider child benefit if you get to £50k total income, then phased losing of personal allowance if you get to £100k, then additional rate if you get to £150k, and from next year you'll also need to consider whether you live in Scotland or not as they'll have higher rate tax kick in at a different threshold to the rest of the UK.
Thank goodness we have the office of tax simplification who over the ~6 years of their existence have worked wonders
...but yeah, if you're looking for a simple rule of thumb "save X% of your dividends for personal tax" afraid you'll be disappointed, as the % will vary massively whether you'll be taking £10k divis or £100k divis and a fair few other variables.
A few years ago it used to be (with ~£8k salary and nothing else) you could take ~£30k divis tax free, anything from there upwards suffered 25%. Only other thing to consider was student loan.
Now if you have ~£8k salary you can take ~£8k divis tax free, ~£25k at 7.5%, 32.5% from there until a bit higher, still have to consider student loan, then consider child benefit if you get to £50k total income, then phased losing of personal allowance if you get to £100k, then additional rate if you get to £150k, and from next year you'll also need to consider whether you live in Scotland or not as they'll have higher rate tax kick in at a different threshold to the rest of the UK.
Thank goodness we have the office of tax simplification who over the ~6 years of their existence have worked wonders
...but yeah, if you're looking for a simple rule of thumb "save X% of your dividends for personal tax" afraid you'll be disappointed, as the % will vary massively whether you'll be taking £10k divis or £100k divis and a fair few other variables.
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