How much do I earn?

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    How much do I earn?

    Ok so it's a dumb sounding question.

    I receive income as a director of my company £8060.04 PAYE, £19298.35 Dividends + Rental income £29383.33 (Gross figure, no interest or expenses deducted). I am confused as to what my total income is for the purposes of things like child benefit and calculating my overall tax burden. Am currently using a tax calculator provided by mortgage works in order to see the effect of landlord tax changes and I'm not sure whether dividends count as "employment income". If I earn dividends + PAYE do I treat the whole lot as I would treat a regular salary and then add the rental income on top of that?

    My interest + expenses for the rental property total £17763.97. When it comes to things like child benefit I'm not sure whether I'm breaching the £50k barrier or not!

    #2
    Dividends are NOT employment income as far as HMRC are concerned, however they are taken into consideration for Child Benefit purposes. Same goes for property income.

    Use the gov. calc. to check your eligibility:

    https://www.gov.uk/child-benefit-tax-calculator

    Comment


      #3
      What you earn and what you are paid have always seemed often different. Many footballers get paid millions but imho only earn a couple of £100ks
      I am legally unqualified: If you need to rely on advice check it with a suitable authority - eg a solicitor specialising in landlord/tenant law...

      Comment


        #4
        Dividends are taxed under a different tax regime to income tax, but they're still taxed.
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

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          #5
          Your "rental income" should be the gross rent ( £29383) minus property expenses ( £17763 ) = £ 11,620 income from rental property.

          I estimate your annual income = £8,060 ( dir. pay ) + £19,298( divi ) + £11,620 ( rent income) = £38,949

          Use the Gov calculator :

          https://www.gov.uk/child-benefit-tax-calculator/main

          Comment

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