Personal tax planner

Company vs personal taxes

It is important to appreciate that what you do in the online application day to day is about maintaining your company and its accounts. LiveCash is designed to give you a detailed insight into your company tax position.

The personal tax planner is independent of your company taxes as it is about you as an individual – personal taxes are subject to different rules, rates and thresholds.

Don’t forget that personal taxes are calculated based on the tax year, i.e. 6th April to 5th April.

How the calculator works

The information Provestor online software has about your income is used by the calculator. It aims to help you see your personal tax position relative to the higher rate tax threshold.

When you issue a dividend you will see information from the calculator or you can access the full personal tax planner here.

The calculator shows you ‘Your higher rate tax starting point’ for the current tax year, over which any income received is likely to be taxed at the higher rate. 

It will display your ‘Estimated earnings this year’ from your salary payments and the ‘Dividends paid to date’. To this you can enter your estimates of ‘Additional income’, i.e. bank interest, rental income, etc to improve the accuracy.

The planner then shows you what additional dividends can be drawn without having to pay higher rate tax. You have the option of entering a figure for ‘Additional dividends to be paid’ and if you pass the higher rate threshold you’ll see the ‘Estimated higher rate tax due’.

Paying higher rate taxes

If your earnings do pass the threshold and higher rate tax becomes due, it will need to be reported on your Self Assessment tax return.

This additional tax will need to be paid by you personally to HMRC when your Self Assessment is submitted at the end of the tax year.