UK middle classes 'struggling despite incomes of up to £60k a year'

Re:UK middle classes 'struggling despite incomes of up to £6... by holoduke on Tuesday February 20, 2024 @06:04AM (#39439877)

Thats not true. Divident income is added to your normal income and taxed. There is a band and some free allowance and different buckets. But all in all it does not really matter if personal income comes from divident or work. Best would be to register yourself outside of the UK and live as a non domicile in the UK.

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Re:UK middle classes 'struggling despite incomes of up to £6... by doix on Tuesday February 20, 2024 @06:13AM (#39439942)

So all the comments made me start second guessing myself, so I went and checked. The difference is pretty staggering to me. You also don't pay national insurance on your dividend income, which helps. But you are right, you add the income from dividends to your regular income to figure out your tax bracket, but the rates are much lower:

https://www.gov.uk/tax-on-dividends

https://www.gov.uk/income-tax-rates

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Re:UK middle classes 'struggling despite incomes of up to £6... by callamdelaney on Tuesday February 20, 2024 @06:22AM (#39440004)

The dividend rates are a few percent lower, but remember to issue a dividend you must first make a profit and profit is taxed at 20% flat.

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