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the overall tax rate is lower, you also dont pay social security contributions. try getting a 50K dividend only payment vs a 50K payment via payroll. it's night
by hankchinaski 3y ago
the overall tax rate is lower, you also dont pay social security contributions. try getting a 50K dividend only payment vs a 50K payment via payroll. it's night and day
- derriz 3y agoOk, but I was responding to the OP claim that dividends were subject to a flat 20% rate. This is not the case - dividend income is added to your earned income for income tax purposes.
- doix 3y agoIt's added but taxed differently. You are correct, I got the details wrong. I should have just written there are tax advantages to not being PAYE. Writing a concrete number (especially when I wasn't sure about the details), was bad.