Micro-company dividend taxation question

mrodent

Hi,
[This is probably not the best forum to ask this... if anyone knows of a free forum for small company type questions re tax please let me know]


I just filled in the first draft of my Self-Assessment. In 2017-18 my company paid me £8200 salary and I received £8690 as dividends (sole shareholder). Plus £10 interest (!) gives "Total income received £16900.00".



I'm very puzzled by these two lines in the calculations, under the heading "Dividends from companies, etc.":
"Basic rate at nil rate - £5000.00 - x 0 % - 0.00
Basic rate - £390.00 - x 7.5% - £29.25"


I can't understand where on earth that £390 figure is coming from. Can anyone say?

Pennywise

mrodent wrote: »

I can't understand where on earth that £390 figure is coming from. Can anyone say?

Your dividends are taxed as follows:-

Balance of unused personal allowance £3,300 (£11,500 less wage £8200)
Zero rate dividend band £5,000
7.5% basic rate dividend band £390
Total £8,690