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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 £11,790.

PAYE (on £8,000, Tax code 1179L, Fiscal Year 2022/2023)

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

Employees NI (on £8,000, Fiscal Year 2022/2023)

Band Rate Lower Limit Upper Limit Tax
Primary threshold 0% 0 £190 0
rate below upper earnings limit 13.25% £190 £967 £0
rate above upper earnings limit 3.25% £967 - £0
Total Tax: £0

Employers NI (on £8,000, Fiscal Year 2022/2023)

Band Rate Lower Limit Upper Limit Tax
Secondary class 1 rate 15.05% £175 - £0
Total Tax: £0

Corporation Tax (on £115,500, Fiscal Year 2022/2023)

Band Rate Lower Limit Upper Limit Tax
Main rate 19% 0 - £21,945
Total Tax: £21,945

Dividend Payment (First Shareholder, Fiscal Year 2022/2023)

Salary £8,000
Net Dividend £93,555
Grossed up dividend (pre 2016/2017) N/A
Tax code 1257L
Tax code (recalculated) 1179L
Taxable income (taxable dividends + salary - allowance) £89,765
Amount subject to tax £87,765
Dividend tax £20,695
Band Rate Lower Limit Upper Limit Tax
basic rate 8.75% 0 £37,700 £3,123
higher rate 33.75% £37,700 £150,000 £17,571
additional rate 39.35% £150,000 - £0
Total Tax: £20,695

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 £11,790.