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Peter W · 15-05-2008, 08:39 PM

The trap with dividends and higher rate tax is that the amount you are actually taxed on is the dividend you receive, PLUS the 10% tax credit that is notionally attached. So, you need to multiply your dividend by 10/9 to get the taxable income figure.

15-05-2008, 08:39 PM	#3 (permalink)
Peter W Junior Member Join Date: Apr 2008 Location: Brighton and Hove Posts: 14	Re: 40% tax bracket is £36000? The trap with dividends and higher rate tax is that the amount you are actually taxed on is the dividend you receive, PLUS the 10% tax credit that is notionally attached. So, you need to multiply your dividend by 10/9 to get the taxable income figure. __________________ Brighton and Hove Accountants