Indivdual has earned income above £150k plus dividend income of £1,200. To my mind dividend is fully covered by £2k allowance and shouldnt impact calculation. However, on inputting on HMRC site their calculation reduces the basic rate band by the dividend amount, so increasing the tax paid by 25% of £1,200. Is this correct ??
31st Oct 2021
Does dividend income impact basic rate band ?
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