Ed

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.