| Tax question - tax on dividend income 13:23 - Jun 23 with 1326 views | GeoffSentence |
Why is dividend income treated differently from other income?
There is a £5000 allowance for dividend income, and up to £32K you only pay 7.5%
Seems odd to me that dividend income is treated more favourably than earned income. |  |
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| Tax question - tax on dividend income on 13:27 - Jun 23 with 1300 views | blue_oyster |
Higher tax stifles investment. |  |
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| Tax question - tax on dividend income on 13:28 - Jun 23 with 1300 views | lowhouseblue |
corporation tax has already been paid on company profits - therefore there are double taxation issues. |  |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| Tax question - tax on dividend income on 13:28 - Jun 23 with 1299 views | Lord_Lucan |
Until recently I don't think there was any level of taxation up to well over £30k.
I only pay myself minimum wage and take everything else through dividends or directors loans. |  |
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| Tax question - tax on dividend income on 13:29 - Jun 23 with 1293 views | PrideOfTheEast |
The profit is already subject to corporation tax so any distribution that is then taxed (above a certain level) is arguably taxed twice. |  | | |
| Tax question - tax on dividend income on 13:32 - Jun 23 with 1279 views | PrideOfTheEast |
| Tax question - tax on dividend income on 13:28 - Jun 23 by Lord_Lucan |
Until recently I don't think there was any level of taxation up to well over £30k.
I only pay myself minimum wage and take everything else through dividends or directors loans. |
Yes, previously you could earn approx £30k gross through dividends plus the personal allowance and pay no income tax at all (i.e.40ish k). | | | |
| Tax question - tax on dividend income on 13:46 - Jun 23 with 1238 views | GeoffSentence |
Thank you all, I see that there is some logic behind it. | |
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| Tax question - tax on dividend income on 13:49 - Jun 23 with 1230 views | BOjK |
One reason for the threshold might be to allow people to hold a small-ish number of shares without having to declare the dividend income on tax returns. |  |
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