Work out the dividend due?

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How did you work out 4725 can you break it down for me please "Roughly speaking the import tax on the dividend would be lb4,725 smaller number the credit of lb3,555 equals lb1,170 toll to settle up." - thankyou for a brilliant explanation

how did you carry lb3,555

Answers:
Your lb32,000 dividend is deem to be web after supposition of 10% duty.

So it is a gross dividend of lb35,555 minus 10% duty of lb3,555.

No extra duty is due on this dividend for the quantity which is below the better rate decoration. But totalling on you earnings of nearly lb9,000 medium that something close to lb5,000 will be chargeable at sophisticated rate.

The charge on this division is at 32.5% smaller quantity the 10% already deem to hold be deduct, which is lb1,125.

The imaginative answer be calculated more accurately than my approximation here.
Companies wage 'underlying rate' equivalent levy on Dividends since they income you ..

.. so if you are on sophisticated rate Tax (40%) you singular enjoy to earnings the difference between that and straightforward rate (currently 22%) = 18% on divcidends you recieve.

NB> If you are on 40% Tax you should consider putting every spare penny you enjoy into your Pension organized to capture your 40% Tax vertebrae .. (see link)


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