Ndubuisi 'Andy' EgwimMoney Coach for Medics|Ex-NHS GP|21+ Yrs Investor| Founder, MoneyWiseDoctor.com|Helping Medics Avoid Big Money Mistakes

🚨 Moneywise Doctor explains - Understanding Your Dividend Taxes as an Investor!

20 Apr 2024 · 1 min

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0:58

Short YouTube explainer by Ndubuisi 'Andy' Egwim addressing how dividend tax depends on an investor's existing income tax bracket. The speaker warns that senior doctors, GPs, and higher-earning trainees are unlikely to pay the 7.5%/0% headline rates and instead will often pay 8.75% on dividends (in his example), with the tax jumping to 33.75% for higher-rate taxpayers and to 39.35% for additional-rate taxpayers. The main claim: dividend tax payable depends on the tax rate applied to the investor's other income.

Questions this video answers

8.75%.

33.75%.

39.35%.

Chapters

I don't think you're paying less than 20%. I think the chances are also that if you are a senior doctor, if you're a GP, or even if you're ST3 and above, or you do locals, you're paying more than 20% because you're probably doing the additional tax rates, sorry, higher tax rate. So any money you make from that investment, you are very likely to end up paying 8.75% on it. And if you're a higher tax rate payer, so it's as if you're being punished for making more money. Your your tax on your dividend jumps from 8.75 to 33.75. And if you're lucky enough to be an additional rate taxpayer, your dividends would jump. Your dividend tax will jump from rather than 33.75, it goes to 39.35. So basically, whatever tax you're going to pay will depend on what tax you're already paying on your other income.