Hi all,
Now that we are close to the SA deadline ive submitted my return but I don't really agree with the calculation, I was wondering what other peoples views are before i even attempt to query it
Like many people i expect I have taken dividends to the end of the basic rate band and was expecting a tax bill for just that, however the SA calc has taken the bank interest I earnt which is under the PSA (and not taxed it as its under the PSA) however its used that figure to push all the income figures to the right, so that my dividend now falls into the higher rate tax band by exactly the same as the interest amount earnt. Therefore although the interest was tax free the net result is that it makes the dividends more taxable.
Thoughts anyone?
Thanks,
Anthony
Now that we are close to the SA deadline ive submitted my return but I don't really agree with the calculation, I was wondering what other peoples views are before i even attempt to query it
Like many people i expect I have taken dividends to the end of the basic rate band and was expecting a tax bill for just that, however the SA calc has taken the bank interest I earnt which is under the PSA (and not taxed it as its under the PSA) however its used that figure to push all the income figures to the right, so that my dividend now falls into the higher rate tax band by exactly the same as the interest amount earnt. Therefore although the interest was tax free the net result is that it makes the dividends more taxable.
Thoughts anyone?
Thanks,
Anthony
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