Skip to main content

This is a new service – your feedback will help us to improve it.

Posted Fri, 16 Aug 2024 13:43:35 GMT by ylangsr
Hi, Wonder if you could clarify on the following calculation. I have a calculation coming as following from the HMRC website for tax return 2023-2024. Below the numbers PAYE 9100 expenses of 345. dividend 1670 and saving 5170 and personal allowance is 12570. Total income on which tax is due £3,025.00 Then I can read "How we have worked out your income tax Amount Savings interest from banks or building societies, securities etc. Starting rate £2,025.00 x 0% £0.00 Income Tax charged after allowances and reliefs £0.00 Income Tax due 0. Can you explain how did they come up with the £2025. Would that be £3025 minus £1000 saving allowance? If that is the case when is the dividend allowance taken? I cannot see any mention of it? Many thanks.
Posted Wed, 21 Aug 2024 15:18:03 GMT by ylangsr
Hi, Could someone advise at all please? Thank you and regards,
Posted Thu, 29 Aug 2024 15:21:35 GMT by HMRC Admin 20 Response
Hi,
It's most likely that your dividend income was covered by your Personal Allowance, so no Dividend Allowance was needed.
£1000 savings allowance was deducted from the £3025 of savings income (after the rest of your Personal Allowance was applied), and the Starting Rate
for Savings of £5000 was then applied to the remainder.
To confirm this, contact us by webchat or phone via Self Assessment: general enquiries
Thank you.

You must be signed in to post in this forum.