The correct answer is: £10,342
|
|
£ |
|
Non savings income |
|
|
£28,000 x 20% |
5,600 |
|
Dividend income |
|
|
£6,370 x 10% |
637 |
|
£12,630 x 32.5% |
4,105 |
|
|
10,342 |
Non-savings income is dealt with first, then dividend income.
Non-savings income falls into the basic rate band, and is taxed at 20%.
Dividend income falls into the basic and higher rate band, and is taxed at 10% and 32.5%.
