Morning all.
Had a spreadsheet from my accountant, advising the impact of taking a £60,000 div in my 08/09 company year.
Can't get hold of my normal rep as she is now on holiday and someone else will call me back.. I love urgency, but I need to work out my house deposit availability today!
I am confused.
They have listed income as:
Employment £6,300
UK Divs/Tax Credits £66,666
Income Tax
£34,535 @ 10% Divs rate = £3,453.50
£265 @ 20% Basic rate = £53.00
£32,131 @ 32.5% Higher Divs rate = £10,442.57
Taking off Tax Credit on Divs of £6,666.60 and £493.00 already paid at source they then add £5,472 in CGT making my total tax liability £12,261.47
I am unsure as to why I pay higher rate on the Divs and then additionally pay this CGT amount.
Can anyone help answer this, or perhaps think of another way that might be more efficient?
I am sole director, 100% shareholder.
Thanks in advance.
Had a spreadsheet from my accountant, advising the impact of taking a £60,000 div in my 08/09 company year.
Can't get hold of my normal rep as she is now on holiday and someone else will call me back.. I love urgency, but I need to work out my house deposit availability today!
I am confused.
They have listed income as:
Employment £6,300
UK Divs/Tax Credits £66,666
Income Tax
£34,535 @ 10% Divs rate = £3,453.50
£265 @ 20% Basic rate = £53.00
£32,131 @ 32.5% Higher Divs rate = £10,442.57
Taking off Tax Credit on Divs of £6,666.60 and £493.00 already paid at source they then add £5,472 in CGT making my total tax liability £12,261.47
I am unsure as to why I pay higher rate on the Divs and then additionally pay this CGT amount.
Can anyone help answer this, or perhaps think of another way that might be more efficient?
I am sole director, 100% shareholder.
Thanks in advance.
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