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.