Corporation tax and dividends

[Newbie Simon]

£10600 personal tax allowance, zero tax
£10601 to £31785 you pay 20% corporation tax + no dividends tax=20% tax
£31786 upwards you pay 20% corporation tax + 25% dividends tax=45% tax

Is this correct?

[Kenny@MyAccountantFriend]

Personal allowance is 10,600 for the 2015-16 tax year.
But you would be paying some employee NI on a potion of the salary as the NI threshold is lower.

Looks like you are using the 2014-15 thresholds in your example.

[northernladuk]

Reason number 1 for getting a decent accountant.

[Newbie Simon]

Reason number 1 for getting a decent accountant.

Is my assumptions wrong then ?

[Scruff]

Your "assumptions is wrong". Someone has very kindly created a spreadsheet which can be found, on the forum, which you can use for various scenarios to maximise your allowances. I can't be arsed to do the search on your behalf.

[Maslins]

£10600 personal tax allowance, zero tax
£10601 to £31785 you pay 20% corporation tax + no dividends tax=20% tax
£31786 upwards you pay 20% corporation tax + 25% dividends tax=45% tax

Is this correct?

It isn't that simple. NICs have been ignored. Also for the top band you mention, the "25% dividends tax" as you call it is effectively 25% of the 80% left after corporation tax...so effectively ends up as 40% overall.