Case Studies

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
 
 
 
     

 

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