2017/18 Dividend Payment Examples – Income Under £100k
April 11th, 2017
|Table 4.1||Salary Only
|Salary + Dividend
Again, the dividend route absorbs more (£8,868.41) gross profit, which boosts the resulting net income (by £14,207.82). The increase is proportionately less than in the £50,000 example above because the extra £50,000 all suffers 32.5% dividend tax, after 19% corporation tax (an effective marginal rate of 45.33%). This compares with £50,000 of salary where the corresponding rate, thanks to 2% employee NIC, is only slightly more at 49.03%. In additional rate tax territory, the corresponding marginal rates are 49.86% for dividend and 53.43% for salary.