Calculating Available Profits

[kirk]

Ok, so I've sent this question to my accountant already but:

Available profits: are talking roughly:

co bank balance
- co. expenses for the month etc.
- VAT (to be paid)
- 19% corp tax
= profit available for dividends?

[VectraMan]

Pretty much, assuming that you haven't paid any dividends yet and the balance doesn't include corporation tax for the previous year.

I always go on:

total invoiced value for the year so far
- co. expenses & salary
- VAT (owed + already paid)
= profit.

19% is corporation tax, 81% is what you can keep. Subtract the dividends you've already paid and you have the amount you can pay.

[AZZIK]

When working out your income for your self assessment, is it net salary or gross salary plus dividends and other income. Not sure how to calculate how much tax I owe on the dividends after its gone over the 38k threshold.

[PAG]

When working out your income for your self assessment, is it net salary or gross salary plus dividends and other income. Not sure how to calculate how much tax I owe on the dividends after its gone over the 38k threshold.

The tax on divi after HR is 32.5 %. Then you have 10% credit. So overall you will have to pay 22.5% from your personal allowance. HTH