Simple? income tax circumstances

mouthwatering

I thought I'd try to get an idea about how much tax I'll have to pay this year (2025/6). So I asked three AIs and got three wildly different answers, none of which seemed correct. I have only three income streams: £12k pension income, £18k dividends and £20k interest. (The numbers are rounded up, not least because the year's not out though I have a very good idea what to expect.)

I think I'll have to pay nothing for the pension because of PA. I get £570+£1000+£5000 off the interest, makes £13430*20% = £2686. I get £500 off the divs, makes £17500*8.75% = £1531. Does that make sense?

phlebas192

Your calculations look right. I confirmed them with HMRC's own calculator. nb: this version doesn't calculate the tax on the pension but, as you say, that will be zero because it ius below the PA.

mouthwatering

Thanks a lot! And another thanks for that link to the HMRC calculator… I'd actually googled for this and found a few online calculators (not this one though) but most would not accept dividends.

phlebas192

They don't make that calculator easy to find! There is a list of HMRC calculators at https://www.gov.uk/guidance/hmrc-tools-and-calculators but it doesn't mention that one. I found it a while back by googling "income tax calculator hmrc dividends"