Dividends and salary tax confused 🙈

higuys

Hi, I’ve started a new job which I get paid a salary for but I also work for my husbands company at home and get paid dividends rather than a salary so I just wondered if my tax rate will be worked out on both these incomes together ? Or if it’s separate? Also the 12.500 tax allowance people get does that get taken off before they decide what tax bracket you’re in? Or after? So Confused 😂 hoping someone can shed some light thanks x

molerat

https://www.gov.uk/tax-on-dividends

higuys

thanks for link but I still don’t know if my tax rate is based on both dividend and salary before personal allowance is taken off ? X

unholyangel

There isn't just one tax rate. Dividends have their own rate bands, separate to the income tax rates.

higuys

So they won’t add my dividends and salary together to get my tax band for salary? X sorry I’m just new to all this so it’ll take me a bit to get used to it lol 

Jeremy535897

There are plenty of sites that explain it all. See for example https://www.litrg.org.uk/tax-guides/tax-basics/how-do-i-work-out-my-tax and the links within it.

csgohan4

OP you need to read the article by the hmrc, if not, ask your company accountant if you have one.
You have not provided any information to allow some of us to answer your question such as salary and how much dividends. 
You may have to fill in a tax return if the dividends are above a certain amount anyways. 

Grumpy_chap

As you have presented this, it is confusing.  Either use an Accountant, or set things out more clearly and cover all the bases:
 - husband's company Ltd Co or sole trader
 - share structure for company
 - do you satisfy minimum wage with the work you do?
etc. etc.

higuys

Thanks everyone for the advice, the info Jeremy sent me was exactly what I needed!! 👍 it had examples so was easy to follow, thanks again x