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limited company-am I basic rate tax payer?

2016Convert Forumite Posts: 26
Seventh Anniversary 10 Posts Combo Breaker
I am sole person Limited company. I pay myself £800 and top up each year through dividends. I recently sold a house and have come into £100k. I have put £20k into a isa. But have £80k to save/invest. I'd like to put the money into a savings account but no idea what I would be taxed on it. Thanks in advance.


  • Dazed_and_C0nfused
    Dazed_and_C0nfused Forumite Posts: 11,499
    10,000 Posts Third Anniversary Name Dropper
    That all depends on exactly what other non savings non dividend income you have.

    If if is just the £9,600 and you haven't applied for Marriage Allowance then you will have some spare Personal Allowance left to use.

    And the savings starter rate band (£5,000 interest taxed at 0%)

    And then the savings nil rate band (up to £1,000 interest taxed at 0%)

    Both of those rate bands form part of the basic rate band so by using them you will have less dividend income which can be taxed at basic rate.

    The £1,000 dividend nil rate band also uses up part of the basic rate band (assuming you aren't already into higher rates when that applies).
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