I am a higher rate taxpayer and want to do some work on the side. I've already secured the work but I am now wondering if I should use a personal company or not. What I do not understand is the tax on dividends.
In this website (https://www.gov.uk/tax-on-dividends), when they say higher rate taxpayer, does this refer to my current salary or how much dividends I pay out to myself?
If I pay myself dividends above £2,000 and I am a higher rate tax payer, does this mean any dividend above £2,000 is taxed at 32.5%?