Remember, the tax band applies to your income after tax allowances and any reliefs have been taken into account; you're not taxed on all of your income.

'Earned income' includes income from employment or self-employment, most pension income and rental income.

'Dividends' means income from shares in UK companies.

Savings and dividend income is added to your other taxable income and taxed last. This means you pay tax on these sorts of income based on your highest Income Tax band.