Dividend and Interest - Self Assessment Tax Calculation

Hi, for 23/24 financial year I received: -£12,570.00 in director salary from my LTD company (my only source of employment and salary) -£37,700.00 in dividends for my LTD company (the only source of dividend income for the year) -£1,631.37 in untaxed interest from savings My understanding is that dividends are taxed after savings income, and as such, they do not effect eligibility for the £5,000 relief from the starting rate for savings (as per this article from the Low Incomes Tax Reform Group: https://www.litrg.org.uk/savings-property/tax-savings-and-investments/tax-savings-income/starting-rate-savings). I would expect the tax calculation to be as follows: Amount that is taxable  (£12,570.00 + £37,700.00 + £1,631.37) - £12,570 = £39,331.37 Tax Breakdown for £39,331.37 ======================== -First £1,631.37 covered by £5,000 starting rate for savings at 0% -First £1,000 of dividend income covered by £1,000 dividend tax allowance at 0% -Leaves £36,600 of dividend income taxed at basic rate of 8.75% -Final tax bill of £3,202.5 However, you self assessment tax breakdown is adding the £1,6131.37 of savings interest to my dividend income and taxing it at the higher rate, negating the starting rate for savings. This doesn't seem right to me. Can HRMC please clarify.

Hi Ed,
Your total income brings you into the higher rate tax bracket and the calculation is correct.
£1000 of dividends is tax rate 0%.
£35069 of the dividends is taxable at 8.75%
The remaing dividend £1631 is liable at 33.75%
Thank you.