If I run a SA for 2023-24, with a salary of 37,500, Interest of 2,000 and dividends of 1,000, the calculation produces this, which is what I expected :
Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England and Northern Ireland)
Basic rate £ 24,930.00 × 20% £4,986.00
Savings interest from banks or building societies, securities etc.
Basic rate band at nil rate £1000.00 × 0% £0.00
Basic rate £1,000 x 20% £200.00
Income Tax charged after
allowances and reliefs £5,186.00
However, if I adjust the interest to 15,000 (still with a salary of 37,500 and dividends of 1,000, the calculation produces this:
Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England and Northern Ireland)
Basic rate £ 37,500.00 × 20% £7,500.00
Savings interest from banks or building societies, securities etc.
Basic rate band at nil rate £200.00 × 0% £0.00
Higher rate band at nil rate £300.00 × 0% £0.00
Higher rate £1,930.00 × 40% £772.00
Income Tax charged after
allowances and reliefs £8,272.00
Is there some detail as to how the calculation works, as I don't understand why there is 37,500 now attributed to "Pay", when the amount after personal allowance is £24,930 (just as it is in the first example), and why the nil rate has been spread across two bands and not wholly in the lower rate band.
I.E: I was expecting
Amount Percentage Total
Pay, pensions, profit etc. (UK rate for England and Northern Ireland)
Basic rate £ 24,930.00 × 20% £4,986.00
Savings interest from banks or building societies, securities etc.
Basic rate band at nil rate £500.00 × 0% £0.00
Basic rate £12,270 x 20% £2454.00
Higher rate £2,230 × 40% £892.00
Income Tax charged after
allowances and reliefs £8,272.00
In fact, if I do 37500/12770/1000 (employment, interest, dividend), it reports 24,930 as basic rate in "pay, pensions, profit", but a single pound more (37500/12771/1000) and it changes to 37,201 ?!?
