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Taxes

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 £7,560.

PAYE (on £8,000, Tax code 756L, Fiscal Year 2021/2022)

Band Rate Lower Limit Upper Limit Tax
Basic rate 20% 0 £37,700 £88
Higher rate 40% £37,700 £150,000 £0
Additional rate 45% £150,000 - £0
Total Tax: £88

Employees NI (on £8,000, Fiscal Year 2021/2022)

Band Rate Lower Limit Upper Limit Tax
Primary threshold 0% 0 £184 0
rate below upper earnings limit 12% £184 £967 £0
rate above upper earnings limit 2% £967 - £0
Total Tax: £0

Employers NI (on £8,000, Fiscal Year 2021/2022)

Band Rate Lower Limit Upper Limit Tax
Secondary class 1 rate 13.8% £170 - £0
Total Tax: £0

Corporation Tax (on £125,950, Fiscal Year 2021/2022)

Band Rate Lower Limit Upper Limit Tax
Main rate 19% 0 - £23,930
Total Tax: £23,930

Dividend Payment (First Shareholder, Fiscal Year 2021/2022)

Salary £8,000
Net Dividend £102,019
Grossed up dividend (pre 2016/2017) N/A
Tax code 1257L
Tax code (recalculated) 756L
Taxable income (taxable dividends + salary - allowance) £102,459
Amount subject to tax £100,019
Dividend tax £23,691
Band Rate Lower Limit Upper Limit Tax
basic rate 7.5% 0 £37,700 £2,644
higher rate 32.5% £37,700 £150,000 £21,046
additional rate 38.1% £150,000 - £0
Total Tax: £23,691

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 £7,560.