Anonymous
Share this content
4

Dividend tax High rate

How much tax do I need to pay of a dividend income of 15,000

Didn't find your answer?

I have a personal income of 60,000 GBP (Salary) and Dividends (15,000) from shares not ISA.

I am high rate tax payer, having 12,500 allowance. Understand the band to high rate is at 37,500 and the dividend rates are:

7,5 % LR, 32,5 % HR

How much dividend tax do I need to Pay.

Is it correct under stood 2,000 dividend is tax free the remaining: 13,000 is taxed at 32,5%??

Replies (4)

Please login or register to join the discussion.

avatar
By NicoleM
28th Nov 2020 07:32

you are correct 32.5% * £13,000 = £4,225

Unless you can afford to put £23,000 into a pension fund, in which case the dividend payment will fall into the lower tax bracket.

Thanks (1)
Replying to NicoleM:
avatar
By Not Anonymous
28th Nov 2020 17:39

Assuming that both the op's "salary" is referring to taxable pay (figure which will be on P60) and your £23k pension contribution is the gross amount of a relief at source contribution then the op would still be liable to higher rate tax on £2,000 of the dividend income.

Total income £75,000
Basic rate band is £60,500

£75,000 less PA £12,500 = £62,500 remaining to be taxed

Earnings of £47,500 taxed at 20%
Dividends of £2,000 taxed at 0%
Dividends of £11,000 taxed at 7.5%
Dividends of £2,000 taxed at 32.5%

Thanks (0)
Replying to Not Anonymous:
avatar
By NicoleM
29th Nov 2020 16:33

true.

Thanks (1)
Replying to NicoleM:
avatar
By frankfx
28th Nov 2020 22:21

£4225 plus £2112 plus£ 2113 perhaps due in 6 months to 31 July.

£8450.

Though there are assumptions made to arrive at £8450

Pension cash flow closer to_£ 18000.

Too late for 2019 20.

Other issues to address, perhaps;

HICB

Time to pay arrangement

Do you have a pension plan?

Thanks (0)
Share this content