{"id":547,"date":"2021-07-09T11:02:16","date_gmt":"2021-07-09T10:02:16","guid":{"rendered":"https:\/\/accountants247glasgowsouth.co.uk\/?p=547"},"modified":"2021-07-09T11:02:42","modified_gmt":"2021-07-09T10:02:42","slug":"dividend-thresholds-for-2021-2022","status":"publish","type":"post","link":"https:\/\/accountants247glasgowsouth.co.uk\/?p=547","title":{"rendered":"Dividend thresholds for 2021\/2022"},"content":{"rendered":"\n<p>On 6 April 2021 the tax-free allowance for dividends remains the same at \u00a32,000.&nbsp; However, the personal allowance will increase to \u00a312,570.<\/p>\n\n\n\n<p>The dividend allowance is in addition to your personal allowance.<\/p>\n\n\n\n<p>There are no dividend tax credits anymore.&nbsp; All dividends are deemed to have been paid gross.<\/p>\n\n\n\n<p>The standard rate of tax on dividends is 7.5%.<\/p>\n\n\n\n<p>Dividend tax bands are the same as those for personal tax, so you pay the higher rate of dividend tax (32.5%) on dividends when earnings are above \u00a350,270 (personal allowance \u00a312,570 plus \u00a337,700).<\/p>\n\n\n\n<p>For additional rate taxpayers (those earning above \u00a3150,000) dividends are taxed at 38.1%.<\/p>\n\n\n\n<p>If you pay yourself the optimal salary of \u00a38,820, we\u2019ve shown below a couple of examples to give you an idea of how much income tax you would pay.<\/p>\n\n\n\n<p><strong>Below Threshold Example<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Salary<\/td><td>\u00a38,820<\/td><\/tr><tr><td>Dividends<\/td><td>\u00a35,680<\/td><\/tr><tr><td><strong>Total Income<\/strong><\/td><td><strong>\u00a314,500<\/strong><\/td><\/tr><tr><td>Less Personal Allowance<\/td><td><strong>(<\/strong>\u00a312,570)<\/td><\/tr><tr><td><strong>Taxable Income<\/strong><\/td><td><strong>\u00a31,930<\/strong><\/td><\/tr><tr><td>Dividend allowance<\/td><td>(\u00a32,000)<\/td><\/tr><tr><td><strong>Tax Payable on:<\/strong><\/td><td><strong>Nil<\/strong><\/td><\/tr><tr><td>Tax Payable:<\/td><td>Nil<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Standard Rate of Tax Example<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Salary<\/td><td>\u00a38,820<\/td><\/tr><tr><td>Dividends<\/td><td>\u00a330,000<\/td><\/tr><tr><td><strong>Total Income<\/strong><\/td><td><strong>\u00a338,820<\/strong><\/td><\/tr><tr><td>Less Personal Allowance<\/td><td><strong>(<\/strong>\u00a312,570)<\/td><\/tr><tr><td><strong>Taxable Income<\/strong><\/td><td><strong>\u00a326,250<\/strong><\/td><\/tr><tr><td>Dividend allowance<\/td><td>(\u00a32,000)<\/td><\/tr><tr><td><strong>Tax Payable on:<\/strong><\/td><td><strong>\u00a324,250<\/strong><\/td><\/tr><tr><td>Tax Payable at 7.5%:<\/td><td>\u00a31,818.75<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p><strong>Higher Rate of Tax Example<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td>Salary<\/td><td>\u00a38,820<\/td><\/tr><tr><td>Dividends<\/td><td>\u00a355,000<\/td><\/tr><tr><td><strong>Total Income<\/strong><\/td><td><strong>\u00a363,820<\/strong><\/td><\/tr><tr><td>Less Personal Allowance<\/td><td><strong>(<\/strong>\u00a312,570)<\/td><\/tr><tr><td><strong>Taxable Income<\/strong><\/td><td><strong>\u00a351,250<\/strong><\/td><\/tr><tr><td>Dividend allowance<\/td><td>(\u00a32,000)<\/td><\/tr><tr><td><strong>Tax Payable on:<\/strong><\/td><td><strong>\u00a349,250<\/strong><\/td><\/tr><tr><td>Tax Payable at 7.5% on \u00a337,700:<\/td><td>\u00a32,827.50<\/td><\/tr><tr><td>Tax Payable at 32.5% on \u00a311,550:<\/td><td>\u00a33,753.75<\/td><\/tr><tr><td>Total Tax Payable:<\/td><td>\u00a36,581.25<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<p>For more detail about dividend thresholds please visit&nbsp;<a href=\"https:\/\/www.gov.uk\/government\/publications\/budget-2021-overview-of-tax-legislation-and-rates-ootlar\/annex-a-rates-and-allowances\" target=\"_blank\" rel=\"noreferrer noopener\">https:\/\/www.gov.uk\/government\/publications\/budget-2021-overview-of-tax-legislation-and-rates-ootlar\/annex-a-rates-and-allowances<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>On 6 April 2021 the tax-free allowance for dividends remains the same at \u00a32,000.&nbsp; However, the personal allowance will increase to \u00a312,570. The dividend allowance is in addition to your personal allowance. There are no dividend tax credits anymore.&nbsp; All dividends are deemed to have been paid gross. The standard rate of tax on dividends [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":438,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","jnews-multi-image_gallery":[],"jnews_single_post":{"subtitle":"","format":"standard","video":"","gallery":"","source_name":"","source_url":"","via_name":"","via_url":"","override":[{"template":"1","single_blog_custom":"","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"1","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","post_reading_time_wpm":"300","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"1","show_prev_next_post":"1","show_popup_post":"1","number_popup_post":"1"}],"image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post_position":"meta","trending_post_label":"Trending","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo":"","sponsored_post_desc":""},"jnews_primary_category":{"id":"52"},"footnotes":""},"categories":[52],"tags":[],"class_list":["post-547","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dividends"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Dividend thresholds for 2021\/2022 - Accountants247 Glasgow South<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/accountants247glasgowsouth.co.uk\/?p=547\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Dividend thresholds for 2021\/2022 - Accountants247 Glasgow South\" \/>\n<meta property=\"og:description\" content=\"On 6 April 2021 the tax-free allowance for dividends remains the same at \u00a32,000.&nbsp; However, the personal allowance will increase to \u00a312,570. 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