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 . | |
| To earn the same net income you will need to increase your annual profits before taxes by £8,250 (11%) to £83,250 . | |
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