YouTube video (speaker: Ndubuisi 'Andy' Egwim) explaining how investment/dividend taxation affects doctors. In this excerpt the speaker explains that many doctors will not pay less than 20% overall and that dividend tax depends on existing income tax band: cited dividend tax figures are 8.75% (lower), 33.75% (higher-rate jump), and 39.35% (additional-rate jump).
8.75%, 33.75%, and 39.35%.
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.
