Calculating client’s Net Spendable Income from various sources

Joseph (date of birth 1st June 1964) has income from various sources;

• Gross salary                      £9,000
• Benefits in Kind                 £10,500
• Rental income                   £5,000 (gross)
• Building Society interest   £  2,000 (gross)
• Company dividends           £30,000 (received)
• UT/OEIC dividends            £ 7,500 (Income units – received)

 Joseph wants to know his tax liability and net spendable income for this tax year.

Solution; Income Tax calculator

 

Source	Non Savings	Savings	Dividends	Total
Gross salary	9,000
Taxable Benefits	10,500
Rental Income	5,000
Savings Interest		2,000
Company Dividends			30,000
UT/OEIC dividends			7,500
TOTAL	24,500	2,000	37,500	£64,000