I have just been trying to calculate my tax return by filling in the IR Tax Calculation Guide. This is the first time, I have not had to pay higher rate tax, so I longer have to pay extra tax on Dividends.
However, the paper calculation guide appears not to calculate the tax
due correctly. It appears to ignore the tax credit on the dividend
payments. If I try adding £900 to the dividends paid and adding £100
to the Tax credits, it claims that I need to pay another £100 tax.
Surely there should be no extra net payment due? If this is the case,
then everyone using the guide to calculate their own return will be
overpaying tax (and this appears likely to be true of previous years)?
- posted 13 years ago