Money i can pay myself

[diesel]

Yes - as per my original post the higher rate is 32.5%, but with the 10% tax credit it takes it to 22.5% of the gross (which equates to 25% of the net).

CT will be paid on profit regardless of whether you withdraw the dividends or not, but you shouldn't forget that you will have that to pay in addition to any personal tax. Sometimes people think the two are the same thing, and have something of a shock when they find out they aren't!

Thanks for the replies Clare.

(now i need to figure out what to do with the surplus ££ in my Ltd Company - a nice problem for a change!)

[ratewhore]

(now i need to figure out what to do with the surplus ££ in my Ltd Company - a nice problem for a change!)

You can pay your CT early and get interest paid on it by HMRC. I don't know what the current rates are...

[Clare@InTouch]

You can pay your CT early and get interest paid on it by HMRC. I don't know what the current rates are...

0.5% - better than most banks though!

HM Revenue & Customs: Interest rate on repayments

[diesel]

Wish tax was less taxing

More i read these posts i get more confused, unless i am really getting grey matter.

The simple calc given by my accountant is out by about £500 from using the free one from SJD website for dividend planning.
my income details are:
Personal Allowance 6,475.00
20% Tax Bracket 37,400.00
Pension Contribution 4,048.67
Earnings before 40% tax 47,923.67

Salary for Year 5,720.00

Other interest from bank interest etc is approx £3100 for the year.

So how much in dividends can i take with and without the 10% tax?

thank you

[Nixon Williams]

Wish tax was less taxing

More i read these posts i get more confused, unless i am really getting grey matter.

The simple calc given by my accountant is out by about £500 from using the free one from SJD website for dividend planning.
my income details are:
Personal Allowance 6,475.00
20% Tax Bracket 37,400.00
Pension Contribution 4,048.67
Earnings before 40% tax 47,923.67

Salary for Year 5,720.00

Other interest from bank interest etc is approx £3100 for the year.

So how much in dividends can i take with and without the 10% tax?

thank you

I assume the interest is gross. I also assume the pension contributions are gross and are personal contributions, ie not paid by your company.

Effectively you start with £47,923 less the salary (£5,720) and interest (£3,100) leaves £39,103 as the gross dividend.

The net dividend is 90% of this which equals £35,193, this is the cash dividend you can take.

Alan

[northernladuk]

Why not get an accountant? Might cost you but could potentially save you the same ammount by stopping u messing up?

[diesel]

I assume the interest is gross. I also assume the pension contributions are gross and are personal contributions, ie not paid by your company.

Effectively you start with £47,923 less the salary (£5,720) and interest (£3,100) leaves £39,103 as the gross dividend.

The net dividend is 90% of this which equals £35,193, this is the cash dividend you can take.

Alan

Thanks for the info
Yes personal pension payments is what is deducted from my accounts. Interest is gross.

Northernladuk - i do have an accountant. But unless i made an error in understanding accountant calcs it different from using the SJD free divi planner - hence wanted some clarification. Normally earning above higher tax bracket was not a prob for me over the past 2 years but this year has been fruitful, i want to avoid higher tax bracket if poss for now.

[Joxer]

If you dont pay any more salary to yourself from ltd, then you might be in for a tax/ni refund as well.

I am in a similar position to the original poster (...having been paid ~£20k in salary in this tax year from my perm role).

Could you provide a bit more detail on this potential Tax/NI refund?

Many Thanks.