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 £66,960.
- Your current combined annual taxes are £20,039.
Income Shifting Liability:
- If caught within the Income Shifting Legislation (thus removing dividend splits), your tax bill could increase by £4,269 (21.31%) to £24,309 .
- Your net income would then decrease by £4,269 (6.38%) to £62,690 per year.
Possible Solutions:
- To earn the same net income you will need to increase your annual profits before taxes by £8,250 (11%) to £83,250 .
Solutions for Contractors:
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