| A | C | D | E | |
|---|---|---|---|---|
1 | 2013/2014 | 2014/2015 | 2015/2016 | |
4 | Annual salary | £0 | £50,000 | £100,000 |
5 | Annual dividends (net) | £50,000 | £0 | £50,000 |
6 | Number of employees | 1 | 1 | 1 |
7 | ||||
8 | NI Lower Earnings Limit (LEL) | £5,668 | £5,772 | £5,824 |
9 | NI Primary Threshold (PT) | £7,748 | £7,956 | £8,060 |
10 | NI Secondary Threshold (ST) | £7,696 | £7,956 | £8,112 |
11 | NI Upper Earnings Limit (UEL) | £41,444 | £41,860 | £42,380 |
12 | ||||
13 | Salary below LEL | £0 | £5,772 | £5,824 |
14 | Salary between LEL & PT | £0 | £2,184 | £2,236 |
15 | Salary between LEL & ST | £0 | £2,184 | £2,288 |
16 | Salary between PT & UEL | £0 | £33,904 | £34,320 |
17 | Salary between ST & UEL | £0 | £33,904 | £34,268 |
18 | Salary above UEL | £0 | £8,140 | £57,620 |
19 | ||||
23 | Employee NI rate below LEL | 0.0% | 0.0% | 0.0% |
24 | Employee NI rate between LEL & PT | 0.0% | 0.0% | 0.0% |
25 | Employee NI rate between PT & UEL | 12.0% | 12.0% | 12.0% |
26 | Employee NI rate above UEL | 2.0% | 2.0% | 2.0% |
27 | ||||
28 | Employer NI rate below LEL | 0.0% | 0.0% | 0.0% |
29 | Employer NI rate between LEL & ST | 0.0% | 0.0% | 0.0% |
30 | Employer NI rate between ST & UEL | 13.8% | 13.8% | 13.8% |
31 | Employer NI rate above UEL | 13.8% | 13.8% | 13.8% |
32 | ||||
33 | Employee NI contributions | £0 | £4,231 | £5,271 |
34 | Employer NI contributions | £0 | £5,802 | £12,681 |
35 | ||||
36 | Total employer NI contributions | £0 | £5,802 | £12,681 |
37 | ||||
38 | Employment allowance | £0 | £2,000 | £2,000 |
39 | Net employer NI contributions | £0 | £3,802 | £10,681 |
40 | ||||
41 | Net employer NI contributions per employee | £0 | £3,802 | £10,681 |
42 | ||||
43 | Qualifying year for state pension | No | Yes | Yes |
44 | ||||
45 | Personal income tax allowance | £9,440 | £10,000 | £10,600 |
46 | Higher rate income tax threshold (relative) | £32,010 | £31,865 | £31,785 |
47 | Higher rate income tax threshold (absolute) | £41,450 | £41,865 | £42,385 |
48 | Additional rate income tax threshold (relative) | £150,000 | £150,000 | £150,000 |
49 | Additional rate income tax threshold (absolute) | £159,440 | £160,000 | £160,600 |
50 | ||||
51 | Salary below personal income tax allowance | £0 | £10,000 | £10,600 |
52 | Salary within income tax basic rate band | £0 | £31,865 | £31,785 |
53 | Salary within income tax higher rate band | £0 | £8,135 | £57,615 |
54 | Salary within income tax additional rate band | £0 | £0 | £0 |
55 | ||||
56 | Salary income tax basic rate | 20.0% | 20.0% | 20.0% |
57 | Salary income tax higher rate | 40.0% | 40.0% | 40.0% |
58 | Salary income tax additional rate | 45.0% | 45.0% | 45.0% |
59 | ||||
60 | Income tax on salary | £0 | £9,627 | £29,403 |
61 | ||||
62 | Dividend tax credit rate | 10.0% | 10.0% | 10.0% |
63 | Gross dividend multiplier | 1.11 | 1.11 | 1.11 |
64 | Annual dividends (gross) | £55,556 | £0 | £55,556 |
65 | ||||
66 | Total income (salary & net dividend) | £50,000 | £50,000 | £150,000 |
67 | Total income (salary & gross dividend) | £55,556 | £50,000 | £155,556 |
68 | ||||
69 | Dividends income tax basic rate | 10.0% | 10.0% | 10.0% |
70 | Dividends income tax higher rate | 32.5% | 32.5% | 32.5% |
71 | Dividends income tax additional rate | 37.5% | 37.5% | 37.5% |
72 | ||||
73 | Dividends income tax basic rate (incl tax credit) | 0.0% | 0.0% | 0.0% |
74 | Dividends income tax higher rate (incl tax credit) | 22.5% | 22.5% | 22.5% |
75 | Dividends income tax additional rate (incl tax credit) | 27.5% | 27.5% | 27.5% |
76 | ||||
77 | Dividend below personal income tax allowance | £9,440 | £0 | £0 |
78 | Dividend within income tax basic rate band | £32,010 | £0 | £0 |
79 | Dividend within income tax higher rate band | £14,106 | £0 | £55,556 |
80 | Dividend within income tax additional rate band | £0 | £0 | £0 |
81 | ||||
84 | Income tax on dividend | £3,174 | £0 | £12,500 |
85 | ||||
86 | Summary | |||
87 | ||||
88 | Annual salary | £0 | £50,000 | £100,000 |
89 | Annual dividends (net) | £50,000 | £0 | £50,000 |
90 | Total income (salary & net dividend) | £50,000 | £50,000 | £150,000 |
91 | Income tax on salary | £0 | £9,627 | £29,403 |
92 | Employee NI contributions | £0 | £4,231 | £5,271 |
93 | Income tax on dividend | £3,174 | £0 | £12,500 |
94 | Net income | £46,826 | £36,142 | £102,826 |
95 | ||||
96 | Profit required to pay salary | £0 | £50,000 | £100,000 |
97 | Corporation tax rate | 20.0% | 20.0% | 20.0% |
98 | Profit required to pay dividend | £62,500 | £0 | £62,500 |
99 | Net employer NI contributions per employee | £0 | £3,802 | £10,681 |
100 | Total profit required | £62,500 | £53,802 | £173,181 |
101 | ||||
102 | Effective overall tax rate | 25.1% | 32.8% | 40.6% |
103 | ||||
104 | ||||
105 | ||||
106 | ||||
107 |