Procrastination is a silent and slow killer of savings. Everyone puts things off, of course, waiting until the last minute and then scurrying to finish a longstanding to-do list. Taken to extremes, this course pulverizes your long-term financial plans.
Dividends and interest are the two major types of income investors can receive. The distinction between dividends and interest is determined by what type or classification of investment pays the income. Dividends and interest also have different tax consequences for both the receiving parties and the paying entities.
Dividends from UK companies are paid out of profits after corporation tax (Corporation tax is at 20% but decreases to 19% from 1 April 2017 - split periods have pro-rata applied). Dividend income is taxable on UK residents at the rate of 7.5% for basic rate payers, 32.5% for higher rate tax payers and 38.1% for additional rate payers.