HOw much dividends to pay for 2015
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    Question HOw much dividends to pay for 2015

    Hi,
    Sorry for a newbie question:
    I have a ltd where I am a director( i am an IT contractor):
    my salary as per my payslips is gross 999.60 every month,
    I dont know why is this amount: My accountant suggested this figure
    How much dividends shall i pay for the period from Apr 2015- Apr 2106 , I want to take one lump sum,
    Assuming I will continue to pay myself the same salary.
    The goal is to attract no tax on dividends
    I have seen some calculators online but being a newbie is tricky. I know it is somewhere in the range of 30k ..
    Appreciate your help

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    Have you asked your accountant?

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    At a very basic level the upper tax limit for 2014/2015 is £42,385, take away your gross salary (£999.6 * 12) leaves you £30389.80

    But these are very simple figures so best ask your accountant.
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    You should definitely ask your accountant, and while you are at it, ask him why he has you paying a salary in excess of the tax free allowance, incurring both NI and income tax.
    Quote Originally Posted by SimonMac View Post
    At a very basic level the upper tax limit for 2014/2015 is £42,385, take away your gross salary (£999.6 * 12) leaves you £30389.80

    But these are very simple figures so best ask your accountant.
    These are very simple, wrong figures. Because of the way the dividend tax credit works, if you take this much you will be into the higher rate tax band and have tax liability.

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    As the other have said you do really need to talk to your accountant as it depends on your other income sources.
    "You’re just a bad memory who doesn’t know when to go away" JR

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    Quote Originally Posted by WordIsBond View Post
    You should definitely ask your accountant, and while you are at it, ask him why he has you paying a salary in excess of the tax free allowance, incurring both NI and income tax.

    These are very simple, wrong figures. Because of the way the dividend tax credit works, if you take this much you will be into the higher rate tax band and have tax liability.
    Thanks
    I like the simple answer, which you provided, ( I will definately call him upon the figures, and ask why he suggested this figure,
    I have no other source of income,
    What will be the better figures to use. so that I dont fall out of the free allowance of NI and tax?
    Can someone suggest? Also if I already paid myself an excess for these months, May, june july ,aug, sept, ( shall I fix it by paying less for the coming months? or is it too late?.

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    Quote Originally Posted by shtek View Post
    Thanks
    I like the simple answer, which you provided, ( I will definately call him upon the figures, and ask why he suggested this figure,
    I have no other source of income,
    What will be the better figures to use. so that I dont fall out of the free allowance of NI and tax?
    Can someone suggest? Also if I already paid myself an excess for these months, May, june july ,aug, sept, ( shall I fix it by paying less for the coming months? or is it too late?.
    Ask your accountant... as has already been suggest multiple times.

    He'll explain what illegal dividends are and if you've distributed any and try and help you understand budgeting as well. Guess what, they will also suggest how you fix it as well...

    You getting the picture?
    'CUK forum personality of 2011' - Winner - Yes really!!!!

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    Quote Originally Posted by WordIsBond View Post
    You should definitely ask your accountant, and while you are at it, ask him why he has you paying a salary in excess of the tax free allowance, incurring both NI and income tax.

    These are very simple, wrong figures. Because of the way the dividend tax credit works, if you take this much you will be into the higher rate tax band and have tax liability.
    I never said if the 30389 was gross or net
    “Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.”

    ― Marcus Aurelius

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    Quote Originally Posted by shtek View Post
    Hi,
    Sorry for a newbie question:
    I have a ltd where I am a director( i am an IT contractor):
    my salary as per my payslips is gross 999.60 every month,
    I dont know why is this amount: My accountant suggested this figure
    How much dividends shall i pay for the period from Apr 2015- Apr 2106 , I want to take one lump sum,
    Assuming I will continue to pay myself the same salary.
    The goal is to attract no tax on dividends
    I have seen some calculators online but being a newbie is tricky. I know it is somewhere in the range of 30k ..
    Appreciate your help
    £27,350.82

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    Quote Originally Posted by shtek View Post
    Thanks
    I like the simple answer, which you provided, ( I will definately call him upon the figures, and ask why he suggested this figure,
    I have no other source of income,
    What will be the better figures to use. so that I dont fall out of the free allowance of NI and tax?
    Can someone suggest? Also if I already paid myself an excess for these months, May, june july ,aug, sept, ( shall I fix it by paying less for the coming months? or is it too late?.
    Best figures are £883.33/month for salary and £2,648.75/month for dividends

    You can fix by paying less (if you have already paid too much)

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