I'll be querying my accountant about this after the NY break, but I've just had a little panic attack about what I had planned for 2007. My current gig's just finished and I was planning to issue a dividend and take some time off, but have just worked out my gross personal tax bill will be around 33k come April. I've built some cash up in the company. Can anyone give me a ballpark figure about how much I can issue a dividend for without hitting the higher rate, and how much is the extra tax burden for going over? My big plans may just about to be going down the toilet possibly...
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38K isn't it? So £5K extra. I've never been able to understand how the maths work after that, but IIRC it works out around 25%.
To make the most of the tax situation I'm going to have to pay about £18K in March.
Must try and resist the temptation to blow it on a car.
Will work inside IR35. Or for food. -
Thanks for the reply VectraMan. The sense of panic was just returning there as my hangover was making itself known. I can live with 25%.Comment
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