Salary = £8,000,
Net dividend = £1,
Other income = £0
Tax code = 1250L,
Tax year = Fiscal Year 2020/2021.
- The Dividend Tax Allowance is £2,000, making £0 of your dividend potentially taxable.
- Your total taxable income of £8,000 is less than your personal allowance of £12,500.
- No extra tax is payable on your dividend.
Solutions for Contractors:
Do you have retained cash? Use an MVL to pay only 10% tax. Find out how.