going over the normal dividend tax barrier

[r0bly0ns]

Or is it 90% of £28825 because of the reasons Hex was talking about - making it £25924

I beleive that this is the correct figure.


But I am not an accountant etc...

[malvolio]

I beleive that this is the correct figure.


But I am not an accountant etc...

Also note the slight gotcha - Hector will assume this divi payment to be an ongoing thing, so you will be asked to pay 50% of that higher rate tax in advance for next year, in two chunks in January and June. Good way to spoil Christmas...

There's an appeals process whereby you can not pay it or pay a reduced amount (basically write and tell them why you think it doesn't apply this year) but you get stung for interest if you get it wrong.

[MrRobin]

Also note the slight gotcha - Hector will assume this divi payment to be an ongoing thing, so you will be asked to pay 50% of that higher rate tax in advance for next year, in two chunks in January and June.

How do you mean an ongoing thing? Like if I paid the full £25k in one go, they'd presume that I'd be paying £25k each and every month? Presumption is the mother of all noddy ups. No wonder HMRC use this method!

I've already taken some divis this year, I'll try and spread the remaining over the next few months up until April. Thanks for the advice.

[malvolio]

How do you mean an ongoing thing? Like if I paid the full £25k in one go, they'd presume that I'd be paying £25k each and every month? Presumption is the mother of all noddy ups. No wonder HMRC use this method!

I've already taken some divis this year, I'll try and spread the remaining over the next few months up until April. Thanks for the advice.

No, they assume divi payments per year will continue at roughly the same level. Totally wrong asumption for the jobbing contractor, of course, but there you go.