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Hello, I have a query regarding self-employed income as a sole trader versus limited company. This would be my second income, and I am trying to understand the total tax applicable. As a limited company: Personal income Wage (not from company): £47,000 Dividend income: £35,000 Total: £82,000 Less: Dividend allowance -£500 Less: Personal Allowance -£12,570 Subtotal: £68,930 Company profit: £40,000 Tax: Wages: (47,000 - 12,570) *20% income tax = £6886 Dividends: 3,270 at *8.75% basic rate and 18,660 at *33.75% higher rate. = £6583.88 Company profit: 40,000 *19% corporation tax = £7,600 Total = £21,069 My understanding is for the company and shareholder receiving dividends there is tax effectively applied at two points - first 19% for total profits (which is calculated prior to dividend payments), and then dividends are taxed depending on the shareholders personal income tax band which also includes income from other sources, so in this case partly 8.75% and then 33.75%. Is this correct? Is the same total taxed twice (with the company director being a shareholder recipient of dividends)? And does the dividend tax band depend on total personal income (i.e., start from the total income tax band) or start from the basic 8.75% regardless? As a sole trader: Personal income Wages: £47,000 Sole trader income: £35,000 Total: £82,000 Tax: (50,270 - £12,570 personal allowance) at 20% and 18,660 at 40% = 7540 + 7464 = £15,004 total Many thanks in advance for any guidance and advice.