Just got my PAYE return and I’m trying to estimate my personal tax liability for 2006/07 i.e. the additional tax in the 40% band.
From previous posts here I get the threshold at which the 40% rate starts for net dividends as:
(40% threshold + personal tax allowance – PAYE) * 0.9 which comes out at:
(34600 + 5225 – 10750 ) * 0.9 = £26,167.50
Therefore any net dividends above this figure are subject to 18% tax. Is this correct?
From previous posts here I get the threshold at which the 40% rate starts for net dividends as:
(40% threshold + personal tax allowance – PAYE) * 0.9 which comes out at:
(34600 + 5225 – 10750 ) * 0.9 = £26,167.50
Therefore any net dividends above this figure are subject to 18% tax. Is this correct?
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