HOw much dividends to pay for 2015

[shtek]

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

[Pherlopolus]

Have you asked your accountant?

[SimonMac]

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.

[WordIsBond]

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.

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.

[SueEllen]

As the other have said you do really need to talk to your accountant as it depends on your other income sources.

[shtek]

thanks

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?.

[northernladuk]

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?

[SimonMac]

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

[JB3000]

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

[JB3000]

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)