Shield for Contractors

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Taxes

PAYE (on £8,000, Tax code 1250L, Fiscal Year 2019/2020)

Band Rate Lower Limit Upper Limit Tax
Basic rate 20% 0 £37,500 £0
Higher rate 40% £37,500 £150,000 £0
Additional rate 45% £150,000 - £0
      Total Tax: £0

Employees NI (on £8,000, Fiscal Year 2019/2020)

Band Rate Lower Limit Upper Limit Tax
Primary threshold 0% 0 £166 0
rate below upper earnings limit 12% £166 £962 £0
rate above upper earnings limit 2% £962 - £0
      Total Tax: £0

Employers NI (on £8,000, Fiscal Year 2019/2020)

Band Rate Lower Limit Upper Limit Tax
Secondary class 1 rate 13.8% £166 - £0
      Total Tax: £0

Corporation Tax (on £103,622, Fiscal Year 2019/2020)

Band Rate Lower Limit Upper Limit Tax
Main rate 19% 0 - £19,688
      Total Tax: £19,688

Dividend Payment (First Shareholder, Fiscal Year 2019/2020)

Salary £8,000
Net Dividend £83,933
Grossed up dividend (pre 2016/2017) £N/A
Tax code 1250L
Taxable income (taxable dividends + salary - allowance) £79,433
Amount subject to tax £77,433
Dividend tax £16,291

Band Rate Lower Limit Upper Limit Tax
basic rate 7.5% 0 £37,500 £2,662
higher rate 32.5% £37,500 £150,000 £13,628
additional rate 38.1% £150,000 - £0
      Total Tax: £16,291