Monthly dividends - paperwork

[Tanya@SC Lee Accountant Ltd]

When the dividend voucher is completed how do you calculate / declare the tax required due on the dividend?

Depends on how much you earned, you do not need to pay any income tax if you are basic rate tax payer because the 10% tax credit on dividend offset the 10% tax rate on dividend. However if you are high tax payer(2011-2012 35K OR ABOVE) you need to pay 32.5% and you have 10% tax credit effectively it is 25%

Thanks
Harry Lee

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