I've not got much faith in my accountants after the mistakes I've seen them make.
I'll be changing accountant after year-end, but in the meantime I wanted to check with you guys about their personal tax calc.
They say that dividends and salary can be taxed it whichever order you wish i.e. its up to you which one uses up each of the tax allowances/bands and this allows you to arrange things in the most tax efficient order.
Whereas the 2 online calculators I've used both do it in a fixed order of salary then dividends
Plus Example 6 on this HMRC factsheet shows salary being taxed first.
www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet
Are the accountants right that you can just tax things in whichever order you want?
Thanks
I'll be changing accountant after year-end, but in the meantime I wanted to check with you guys about their personal tax calc.
They say that dividends and salary can be taxed it whichever order you wish i.e. its up to you which one uses up each of the tax allowances/bands and this allows you to arrange things in the most tax efficient order.
Whereas the 2 online calculators I've used both do it in a fixed order of salary then dividends
Plus Example 6 on this HMRC factsheet shows salary being taxed first.
www.gov.uk/government/publications/dividend-allowance-factsheet/dividend-allowance-factsheet
Are the accountants right that you can just tax things in whichever order you want?
Thanks
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