Note: From the 2010-11 tax year the Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. Because your income is above £100,000 your tax allowance has been reduced from £12,570 to £12,220.
PAYE (on £8,000, Tax code 1222L, Fiscal Year 2024/2025)
| Band | Rate | Lower Limit | Upper Limit | Tax |
|---|---|---|---|---|
| Basic rate | 20% | 0 | £37,700 | £0 |
| Higher rate | 40% | £37,700 | £125,140 | £0 |
| Additional rate | 45% | £125,140 | - | £0 |
| Total Tax: | £0 |
Employees NI (on £8,000, Fiscal Year 2024/2025)
| Band | Rate | Lower Limit | Upper Limit | Tax |
|---|---|---|---|---|
| Primary threshold | 0% | 0 | £242 | 0 |
| rate below upper earnings limit | 8% | £242 | £967 | £0 |
| rate above upper earnings limit | 2% | £967 | - | £0 |
| Total Tax: | £0 |
Employers NI (on £8,000, Fiscal Year 2024/2025)
| Band | Rate | Lower Limit | Upper Limit | Tax |
|---|---|---|---|---|
| Secondary class 1 rate | 13.8% | £175 | - | £0 |
| Total Tax: | £0 |
Corporation Tax (on £121,000, Fiscal Year 2024/2025)
| Band | Rate | Lower Limit | Upper Limit | Tax |
|---|---|---|---|---|
| Small profits rate | 19% | 0 | £50,000 | £0 |
| Marginal relief | 3/200 | £50,000 | £250,000 | (£1,935) |
| Main rate | 25% | £250,000 | - | £30,250 |
| Total Tax: | £28,315 |
Dividend Payment (First Shareholder, Fiscal Year 2024/2025)
| Salary | £8,000 |
| Net Dividend | £92,685 |
| Grossed up dividend (pre 2016/2017) | N/A |
| Tax code | 1257L |
| Tax code (recalculated) | 1222L |
| Taxable income (taxable dividends + salary - allowance) | £88,465 |
| Amount subject to tax | £87,965 |
| Dividend tax | £20,388 |
| Band | Rate | Lower Limit | Upper Limit | Tax |
|---|---|---|---|---|
| basic rate | 8.75% | 0 | £37,700 | £3,255 |
| higher rate | 33.75% | £37,700 | £125,140 | £17,133 |
| additional rate | 39.35% | £125,140 | - | £0 |
| Total Tax: | £20,388 |
Note: From the 2010-11 tax year the Personal Allowance reduces where the income is above £100,000 – by £1 for every £2 of income above the £100,000 limit. Because your income is above £100,000 your tax allowance has been reduced from £12,570 to £12,220.