Extra Tax Money

[Lance]

I don't know what the "HMRC payment plan" is but I expect that the interest would be less than the 38% you would have to pay on the dividends if you take them out and go into the higher rate tax band.

38%? You sure about that?

[zonkkk]

38%? You sure about that?

Or 32%, point taken.

[zonkkk]

I would have thought once you've attracted the attention of HMRC it won't be the first time? Better to stay off their books rather than use them for a cheap loan IMO.

Or maybe they see you're struggling but willing to pay tax and leave you alone.

[Lance]

Or 32%, point taken.

apparently the point wasn't taken.
Check again.

Is this why you can't afford to pay your tax, or a mortgage?

[zonkkk]

apparently the point wasn't taken.
Check again.

Is this why you can't afford to pay your tax, or a mortgage?

Apparently you should get your facts straight. I can pay my tax and mortgage, thank you very much.
Secondly, dividend tax for higher rate tax payers is 32.5% and for additional tax payers 38.1%.

What point were you trying to make then?

[Lance]

Apparently you should get your facts straight. I can pay my tax and mortgage, thank you very much.
Secondly, dividend tax for higher rate tax payers is 32.5% and for additional tax payers 38.1%.

What point were you trying to make then?

No particular point other than you got the tax rate wrong. Again.
And if you have to borrow money to pay your tax then you can't pay it. You are a different legal entity to your company. The fact that your company can afford to pay you a dividend is not the same as you being able to afford it.

You != Your LTD.

[kongo311]

What about a very trivial approach such as:
a) consumer loan - 3-5% pa, which you could repay after 6 April as soon as you withdraw dividends for 2021/22, or
b) even a cash withdrawal from any of your credit cards, which would work out as 3% initial charge + another 2% for March (based on 22% pa), or around 5% in total, which you would again repay immediately after 6 April. Even that in any case would be cheaper than paying 32.5-38.1% tax on dividends

[zonkkk]

No particular point other than you got the tax rate wrong. Again.
And if you have to borrow money to pay your tax then you can't pay it. You are a different legal entity to your company. The fact that your company can afford to pay you a dividend is not the same as you being able to afford it.

You != Your LTD.

Your attention to detail is abysmal. I rest my case.