# Has anyone find a problem with SA calculation

Dividend tax for 23-24

• ### HMRC performance report 2023-24

|Has anyone found a problem with HMRC calculation of tax for divedend on SA?

I think dividend tax in the following should be £11712 @ 8.75 and 7288 @ 33.75%

Am I missing here something?
Amount    Percentage    Total
Pay, pensions, profit etc. (UK rate for England and Northern Ireland)
Basic rate    £25,988.00    x 20%    £5,197.60
Dividends from companies etc
Basic rate at nil rate    £1,000.00    x 0%    £0.00
Basic rate    £10,712.00    x 8.75%    £937.30
Higher rate    £8,288.00    x 33.75%    £2,797.20
Starting rate    £0.00    x 0%    £0.00
Basic rate band at nil rate    £0.00    x 0%    £0.00
Basic rate    £0.00    x 20%    £0.00
Higher rate band at nil rate    £0.00    x 0%    £0.00
Higher rate    £0.00    x 40%    £0.00
Additional rate    £0.00    x 45%    £0.00
Income Tax due after allowances and reliefs              £8,932.10
plus Tax due on Gift Aid payments    £0.00    x 20%    £0.00
minus Capital Gains Tax    £0.00
minus Remittance basis charge for non-domiciles    £0.00
minus Income tax    £8,932.10
Income Tax due    £8,932.10
minus Tax deducted
From all employments, UK pensions and state benefits    £5,384.00
Total tax deducted    £5,384.00
Total Income Tax due              £3,548.10

### Replies (4)

By Not Anonymous
24th Jul 2024 11:03

I think you're saying the dividend nil rate band should be utilised after the dividend basic rate band i.e., £11712 of the dividend income uses the remaining basic rate band.

Then £1,000 is taxed at 0% but this falls into the higher rate band.

And finally the remaining £7,288 is taxed at dividend higher rate.

However I thought the dividend nil rate band had to be used first and, in this situation, that would use some of the basic rate band that was still available, pushing more of the income into the higher rate band.

Thanks (5)
By rmillaree
24th Jul 2024 11:28

+1 to this

basic rate band left for divis is £11,712 (37700-25988)

first 1k of dividends taxed at 0% most definately consumes basic rate band available
so only £10,712 left to be taxed at 8.75% not £11,712

Thanks (1)
By Duggimon
24th Jul 2024 12:37

+2 to this

Remaining BRB is £50.270 less £12,570 PA, less £25,988 pay, less £1,000 dividend NRB leaves £10,712

£10,712 taxed at 8.75%, remainder at 33.75%.

The 0% band for dividends is a roving chunk that changes the tax rate to 0% wherever it lands, and where it lands is on the first £1,000 of dividend income outside the personal allowance.

Thanks (0)
By emanresu
25th Jul 2024 17:16

JGM wrote:

Am I missing here something?

You've forced us to make assumptions so, to clarify, give us the raw data:

1. What was the total of Gross Pay, pensions, profit etc. ?
2. What was the total Personal Allowance?
3. What was the total Gross Dividends?

Thanks (0)