mpatel14

Hi, thank you for your response. Even though the salary is under the 40% tax bracket of £50,270, I wanted to check why the saving income is still taxed at the higher rate please? I would appreciate if you can explain using a simple calculation with the above example. Thanks

Hi, I wanted to check the tax calculation on the scenario below please for YE 24: Salary - £50,269 less personal allowance of £12,570 will mean taxable income is £37,699 taxed at 20% = £7,540 Saving income - £20k less saving allowance of £1k (as still under basic tax rate) = £19k taxed at 20% = £3,600 Dividend Income - £5k less allowance of £1k = £4k taxed at 8.75% = £350 (or should the tax rate be higher) Thanks

[Dispaly name amended]