Personal Pension Contributions and Effect on Dividend Payments at 7.5% Rate

[Paralytic]

Simple answer, yes you could have paid yourself more dividends at 7.5%

Pension just like gift aid increases your basic rate bracket so your bracket would increase and no longer be £46,350 for 18/19.

Thanks. And, as it turns out, I did actually pay myself the max dividend at the 7.5% tax bracket. The dividend was declared on 31st March, but only paid out this month...

[Lance]

Thanks. And, as it turns out, I did actually pay myself the max dividend at the 7.5% tax bracket. The dividend was declared on 31st March, but only paid out this month...

hmmmm.....
I think you mean the dividend was declared, and paid on March 31st but into your Director's loan account.....

if an interim dividend is declared on 31st March 2016, but not actually paid until 30th April 2016, then the date of the dividend will be 30th April 2016 and it will fall into the new tax regime

What does your accountant say about a retrospective declaration?

[craigy1874]

Unbelievably relaxed attitude to breaking the law and backdating a dividend 8 months after the event.

And yet you will moan that off-payroll is ruining things for you

[Paralytic]

hmmmm.....
I think you mean the dividend was declared, and paid on March 31st but into your Director's loan account.....

Yes, that's what i meant. I really should proof read what i write before potsing.

What does your accountant say about a retrospective declaration?

They're fine:


As the dividend has been declared it can be paid whenever so if this was entered on 31/03 as a dividend then it will go through in the 2018/19 tax return even though it hasn't been paid until now.

In the accounts this will just show as directors loan account for you.

Unbelievably relaxed attitude to breaking the law and backdating a dividend 8 months after the event.

And yet you will moan that off-payroll is ruining things for you

No I won't.