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So all the comments made me start second guessing myself, so I went and checked. The difference is pretty staggering to me. You also don't pay national insuranc
by doix 3y ago
So all the comments made me start second guessing myself, so I went and checked. The difference is pretty staggering to me. You also don't pay national insurance on your dividend income, which helps. But you are right, you add the income from dividends to your regular income to figure out your tax bracket, but the rates are much lower:
https://www.gov.uk/tax-on-dividends https://www.gov.uk/tax-on-dividends
https://www.gov.uk/income-tax-rates https://www.gov.uk/income-tax-rates
- callamdelaney 3y agoThe dividend rates are a few percent lower, but remember to issue a dividend you must first make a profit and profit is taxed at 20% flat.