Results for: Salary 1 = £6,000; Salary 2 = £6,000; Profit before taxes = £75,000; Dividend Split = 50%/50%
Income Shifting Liability:
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| Current Financial Situation: | |
|---|---|
| Your current combined net annual income is £66,065. | |
| Your current combined annual taxes are £20,934. | |
| Income Shifting Liability: | |
| If caught within the Income Shifting Legislation (thus removing dividend splits), your tax bill could increase by £4,411 (21.07%) to £25,345 . | |
| Your net income would then decrease by £4,411 (6.68%) to £61,654 per year. | |
| Possible Solutions: | |
| To earn the same net income you will need to increase your annual profits before taxes by £10,608 (14.14%) to £85,608 . | |
| To earn the same net income you will need to increase your annual profits before taxes by £10,608 (14.14%) to £85,608 . | |
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