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Budget
- Thread starter Mordac
- Start date
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10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
- Thanks received
- 1,882
10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
And this is why I said ask your accountant ...
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- Thanks received
- 1,118
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£225 more than what you're paying in tax now.
- Thanks received
- 335
10k salary untaxed
1-1.5k dividends untaxed as part of your initial allowance (can't remember what this year's allowance is, I'm going to ask my accountant)
further 2k dividends tax free
remaining 26.5-27k dividends taxed at 7%
Roughly, but that's why I have an accountant.
I think its £11.5k personal allowance from next April.
The basic rate of tax on dividends is 7.5%, not 7%.
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- 1,118
Correct, confirmed as 11.5k and agreed on the dividend. I've checked an email from my accountant
I was just providing a quick example. That in itself illustrates why an accountant is important; they're paid to keep on top of this sort of thing so that you can carry on fee-earning.
