Dividend threshold

[skelm]

Hi,

Wonder if someone cold shed some light on this:

Is the "lower tax" dividend threshold ( approx 39K ) per shareholder or for the company as a whole?

e.g 2 directors/shareholders with 50/50 split =39K x 2 ...... or total is 39K?

Thanks

[Alan @ BroomeAffinity]

Per person. But it depends on other income and the £39k must include any salary the individual(s) are paid. Remember also that its the dividend + tax credit which needs to be taken into account NOT just the divi.

[MrRobin]

Just1morethan is correct. It's a personal income tax, so the thresholds are against each person.

[skelm]

So am i correct in saying that the "lower divi threshold" is 34600 + 5225=39825.

And if I pay myself NMW of the usual 5225 my "allowed" divi is 34600-10% =£31140?

So in theory I could pay myself £2500 approx/month in divi?



Thanks

[Alan @ BroomeAffinity]

Yep. Correct.

If you've any other income you need to account for that. That includes bank interest, rental income, etc etc.

And remember to get the paperwork right. You need to vote a dividend and record this in the minutes of the meeting and you need to issue a divi voucher for each divi you issue. In

[skelm]

Thanks for that. I get the divi minutes bit .... but how does one do a divi voucher?

[Alan @ BroomeAffinity]

but how does one do a divi voucher?

I can send you a template in word. PM me if yoo want it

[skelm]

I would except I keep getting told I dnt have sufficient priviledges to PM yoo.

<mod note>Please use the contact form to ask the administrator to up your status</mod note>

[Clippy]

but how does one do a divi voucher?

I can send you a template in word. PM me if yoo want it

Would appreciate it if you could PM me the voucher as well - would be a big help.

TIA.

[Archangel]

I would except I keep getting told I dnt have sufficient priviledges to PM yoo.

<mod note>Please use the contact form to ask the administrator to up your status</mod note>

Just make approx 5 more posts in say the light relief forum, then you'll be able to PM.