managing for tax..
Discussion
Just doing a theoretical worked example.
Say someone is on 100% dividend income and they are looking to optimise tax this year.
I understand marginal rate at just over £100k due to withdraw of personal allowance is up in the 65% or so range.
Therefore ideally things should be managed to slightly drop under £100k
Would they be right that at £90k when calculating tax hmrc will add the tax credit on grossing up to £99k or thereabouts before doing final calcs?
(ie) Dividend payments (& all other income) for the year should not exceed £90k if you want to avoid losing the personal allowance?
Or have they got that wrong?
Eric?
Say someone is on 100% dividend income and they are looking to optimise tax this year.
I understand marginal rate at just over £100k due to withdraw of personal allowance is up in the 65% or so range.
Therefore ideally things should be managed to slightly drop under £100k
Would they be right that at £90k when calculating tax hmrc will add the tax credit on grossing up to £99k or thereabouts before doing final calcs?
(ie) Dividend payments (& all other income) for the year should not exceed £90k if you want to avoid losing the personal allowance?
Or have they got that wrong?
Eric?
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