Shield for Contractors

The UK's leading contractor site. 200,000 average monthly visitors.

Taxes

PAYE (on £8,000, Tax code 1257L, Fiscal Year 2021/2022)

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 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% £184 - £0
      Total Tax: £0

Corporation Tax (on £88,000, Fiscal Year 2021/2022)

Band Rate Lower Limit Upper Limit Tax
Main rate 19% 0 - £16,720
      Total Tax: £16,720

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

Salary £8,000
Net Dividend £71,280
Grossed up dividend (pre 2016/2017) £N/A
Tax code 1257L
Taxable income (taxable dividends + salary - allowance) £66,710
Amount subject to tax £64,710
Dividend tax £12,105

Band Rate Lower Limit Upper Limit Tax
basic rate 7.5% 0 £37,700 £2,677
higher rate 32.5% £37,700 £150,000 £9,428
additional rate 38.1% £150,000 - £0
      Total Tax: £12,105