Definition of Basic Rate Taxpayer

lifebegins

I am trying to understand whether someone who is paid £30,000 salary but receives dividends of £25,500 is still classed as a basic rate taxpayer when opening a savings account?

I know that dividend income is still taxed, but not treated as income in the same way as wages/pensions/benefits.

Also can anyone point me in the direction of how I can find an advisor who can help us streamline and minimise tax as we go into retirement in around 10 years (hopefully).
I'm looking for someone to advise us how to save tax rather than list all the compliances like an accountant. Thanks!

Jeremy535897

Read through this:
https://www.litrg.org.uk/tax-guides/savers-property-owners-and-other-tax-issues/savings-and-tax

The short answer is that dividends are included when working out if you are a higher rate taxpayer. On the figures you mention, you would need to complete a self assessment tax return, and you would have a liability to tax.

biscan25

lifebegins said:

I am trying to understand whether someone who is paid £30,000 salary but receives dividends of £25,500 is still classed as a basic rate taxpayer when opening a savings account?

I know that dividend income is still taxed, but not treated as income in the same way as wages/pensions/benefits.

Also can anyone point me in the direction of how I can find an advisor who can help us streamline and minimise tax as we go into retirement in around 10 years (hopefully).
I'm looking for someone to advise us how to save tax rather than list all the compliances like an accountant. Thanks!

Wow that's a lot of dividends. The shares should really be in a wrapper of some kind (ISA or SIPP), and I'd be using the 10 years until retirement to get as close to this as I could, bearing in mind the annual/lifetime limits.

A bog standard financial advisor worth their salt should be able to help with this. Here is MSE's advice on finding one. Financial Advisers near me: get independent help - MSE (moneysavingexpert.com)

Grumpy_chap

biscan25 said:

Wow that's a lot of dividends. 

Not necessarily if that is from a Close Company.