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Taxes

PAYE (on £8,000, Tax code 1257L, 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 £26,389, Fiscal Year 2024/2025)

Band Rate Lower Limit Upper Limit Tax
Small profits rate 19% 0 £50,000 £5,013
Marginal relief 3/200 £50,000 £250,000 (£0)
Main rate 25% £250,000 - £0
Total Tax: £5,013

Dividend Payment (First Shareholder, Fiscal Year 2024/2025)

Salary £8,000
Net Dividend £21,375
Grossed up dividend (pre 2016/2017) N/A
Tax code 1257L
Taxable income (taxable dividends + salary - allowance) £16,805
Amount subject to tax £16,305
Dividend tax £1,426
Band Rate Lower Limit Upper Limit Tax
basic rate 8.75% 0 £37,700 £1,426
higher rate 33.75% £37,700 £125,140 £0
additional rate 39.35% £125,140 - £0
Total Tax: £1,426