Thanks for the replies everyone
Its possible I didn't understand them properly, but I thought I did. They basically just seemed to be saying that say, for my 2014-2015 personal tax return, the amount of dividends I took from the company in the company 2014-2015 tax year is what would be taken into account. So for example, if I took £10k april-april but 15k feb-feb, they would be putting 15k on my personal tax return.
This is how the conversation went...
In November I asked my accountant how much more I could withdraw as dividends this year without pushing myself over into the higher tax bracket and then having to pay (more) tax/student loan on the dividend(s) taken.
I calculated it to be roughly £10k I could take before hitting the limit, because I have only taken X amount since last April.
My accountant said you can't take any more without going over the limit because you've already taken Y amount.
I then questioned this because my amount (X) was so different to theirs (Y) and they said that for dividend totals for personal tax returns they use the company tax year. So I had taken Y amount since last February.
They then went on to say that my options for getting more money are...
- Take more now and pay tax/student loan on it
- Wait until February and then you can take more as it will be a new tax year for dividends
- Add someone as a shareholder (can't remember which type they said) and give them Z amount then get them to give me the money (funny enough, I discounted this option straight away)
Yeah this is the way I was viewing it.
So for example, if I took dividends throughout the year as...
February 2014 - £10,000
August 2014 - £10,000
I would view that as being £10k in 2013-2014 personal tax and £10k in 2014-2015 personal tax.
However my accountant seems to be saying that would all be 2014-2015 personal tax.
I think they must be doing it all as a directors loan account, which I hadn't realised, am going to re-read all the paperwork I've had from them before but I don't remember seeing anything that hinted at this before.
Its possible I didn't understand them properly, but I thought I did. They basically just seemed to be saying that say, for my 2014-2015 personal tax return, the amount of dividends I took from the company in the company 2014-2015 tax year is what would be taken into account. So for example, if I took £10k april-april but 15k feb-feb, they would be putting 15k on my personal tax return.
This is how the conversation went...
In November I asked my accountant how much more I could withdraw as dividends this year without pushing myself over into the higher tax bracket and then having to pay (more) tax/student loan on the dividend(s) taken.
I calculated it to be roughly £10k I could take before hitting the limit, because I have only taken X amount since last April.
My accountant said you can't take any more without going over the limit because you've already taken Y amount.
I then questioned this because my amount (X) was so different to theirs (Y) and they said that for dividend totals for personal tax returns they use the company tax year. So I had taken Y amount since last February.
They then went on to say that my options for getting more money are...
- Take more now and pay tax/student loan on it
- Wait until February and then you can take more as it will be a new tax year for dividends
- Add someone as a shareholder (can't remember which type they said) and give them Z amount then get them to give me the money (funny enough, I discounted this option straight away)
Originally posted by tractor
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So for example, if I took dividends throughout the year as...
February 2014 - £10,000
August 2014 - £10,000
I would view that as being £10k in 2013-2014 personal tax and £10k in 2014-2015 personal tax.
However my accountant seems to be saying that would all be 2014-2015 personal tax.
I think they must be doing it all as a directors loan account, which I hadn't realised, am going to re-read all the paperwork I've had from them before but I don't remember seeing anything that hinted at this before.
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