Hi, I'm new to UK and no really sure how to calcuate tax. Please kindly see if my understanding is correct. Thanks!
My personal allowance is £12,570. I also heard I've £5,000 interest allowance and also £1,000 allowance for dividend (based on 2023/24 tax year)
So not sure if my below understanding is correct?
Case 1) let say if I don't have a job and I've £17,570 income from interest. I don't need to pay tax?
Case 2) let say if I don't have a job and I've £17,570 income from interest and another £2,000 from dividend. Do I only pay £1,000 * 8.75% dividend tax?
Case 3) let say if I don't have a job and I've £12,750 from divided + £5,000 from interest, do I need to pay tax?
Case 4) let say I have a job and pay me £12,750 annually and I also receive £5,000 from interest. i still don't need to pay tax?
Case 5) let say I have a job and pay me £12,750 annually and I also receive £5,000 from interest, plus £1,000 from dividend. Do I need to pay tax?
Case 6) let say I have a job and pay me £15,750 annually and I also receive £5,000 from interest, plus £2,000 from dividend. My tax should look like this?
Income tax (£15,750 + £5000 - £12,750 - £5,000) * 20% and (£2,000 - £1,000) * 8.75% = £1,475)
Sorry for my long post and once I am clear, I will share with my friends too. Many thanks!
