How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TonyTax Your Own Question
TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15979
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
Type Your Tax Question Here...
TonyTax is online now

if my income is £30000 per year and i get a dividend of £75000

This answer was rated:

if my income is £30000 per year and i get a dividend of £75000 what is the additional tax to pay?

Is the £30,000 your salary? Will the dividend be paid in the current tax year, 2013/14?
Customer: replied 4 years ago.

Yes salary £30000 dividend paid 2014/15 from a limited company i am a joint shareholder in but draw no salary


Leave this with me while I draft my answer.

Hi again.

If your total income is over £100,000 in 2014/15, then you will lose £1 of the personal allowance for every £2 of income over £100,000. As your income will be £113,333 (£30,000 + £75,000 + £8,333 tax credit), you will be left with £3,333 of your £10,000 personal allowance. The loss of £6,667 of your personal allowance will cost you £2,833 in tax.

The 20% tax band covers the first £31,865 of taxable income. Of that, £26,667 will be used by the taxable part of your salary (£30,000 - £3,333). The balance of £5,198 will cover the first £5,198 of your £83,333 dividend and that will be taxable at the lower dividend rate of 10% (£519.80). The balance of the dividend of £78,135 (£83,333 - £5,198) will be taxable at 32.5% (£25,393.88). The total tax liability on the dividend will, therefore, be £25,913.68. Deduct the 10% tax credit of £8,333.33 and you are left with a net liability on the dividend of £17,580.35. This will be payable on 31 January 2016.

I hope this helps but let me know if you have any further questions.

TonyTax and other Tax Specialists are ready to help you