How much do I earn?

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

    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).

        Comment


          #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

          Latest Activity

          Collapse

          • SDLT impact of varying ownership % of jointly held with spouse mortgaged property
            Stu2222
            Hi All

            I've been through many of the historic posts but haven't found a clear answer to this point (but happy to be pointed in the right direction).

            I jointly hold a mortgaged investment property with my wife, 50/50 as joint tenants and both on the BTL mortgage. 50% of the...
            15-01-2018, 16:57 PM
          • Reply to SDLT impact of varying ownership % of jointly held with spouse mortgaged property
            Gordon999
            If you + wife are registered as "joint tenants" at Land Registry , the Tax Office will automatically assume that each "joint tenant" is entitle to 50% of the rental income.

            You can change the distribution of income to 1%: 99% by producing a "Declaration of Trust"...
            19-01-2018, 19:56 PM
          • VAT on professional fees - commercial to residential planning application
            Dan_Manchester
            Evening all,

            We have recently submitted a planning application to convert a small commercial unit in a couple of new apartments. As I understand it the building work will be zero-rated for VAT as we are creating dwellings were none were previously.

            The planners have requested...
            16-01-2018, 20:20 PM
          • Reply to VAT on professional fees - commercial to residential planning application
            Gordon999
            VAT is chargeable by the company providing service to you. The VAT charge is not decided by you.

            You have to register as developer with the HMRC VAT office so that you can claim back VAT paid to the company for the building work and supply of building materials. VAT paid for professional...
            19-01-2018, 19:35 PM
          • Capital Gains Tax !
            columbo
            Ok you clever people , I could make this very long but I will try and keep it short , How do you no or find out if you have to pay this tax ? I have a few property,s and would like to sell the largest one but have been told if I'm not the payer of the bills I only have 18 months and then its not my...
            19-01-2018, 14:20 PM
          • Reply to Capital Gains Tax !
            Gordon999
            If you have lived in the property for 21 years out of 23 years , the tax office will give exemption to capital gains tax for 21 years + 18 months from date of moving out. So only the gain for last 6 months is taxable.

            If your capital gain over 23 years gives you £460,000 profit which...
            19-01-2018, 19:16 PM
          • Reply to Capital Gains Tax !
            columbo
            Thank you .
            19-01-2018, 16:49 PM
          • Reply to Capital Gains Tax !
            AndrewDod
            Then your CGT bill will almost certainly be zero.

            Unless it is an extremely expensive property and increased in value by at least a million or so (given two basic CGT exemptions) -- if that is the case you will need to look at precise numbers.

            Can you prove it was your only...
            19-01-2018, 16:46 PM
          • Reply to Capital Gains Tax !
            columbo
            Thanks for your replys , The house was our main living house until 2 years ago when we down sized ,we never rented the house out as tried to sell it but it fell threw a couple of times so no we never rented this house , Our tax records are all complete and up to date with the other propertys , We don't...
            19-01-2018, 16:27 PM
          • Reply to Capital Gains Tax !
            AndrewDod
            Paying of (utility) bills has nothing whatsoever to do with ownership with respect to Capital gains.

            If you lived there for 23 years and rented it out for 2 years, GCT would almost certainly be zero.

            But you seem not to have lived there - or did you????. The amount of time...
            19-01-2018, 16:25 PM
          Working...
          X