Self Assessment - not enough money to pay?

[Platypus]

Also Dividends should be paid after tax is deducted.

Yes but there can be additional top-rate tax to pay

[ratewhore]

SallyAnne, is this post connected to a post you made some time back where you said you spend what you turnover and then when your tax bill is due you start saving for it?

[Diestl]

Yes but there can be additional top-rate tax to pay

What do you mean? I've paid all my tax up front? I pay low salary to avoid higher rate and take dividends as rest of income which has already been taxed (Corp tax).

[EternalOptimist]

What do you mean? I've paid all my tax up front? I pay low salary to avoid higher rate and take dividends as rest of income which has already been taxed (Corp tax).

yes but it all gets added back together to see if there is any top rate to pay (in uk dietstl , at least)

[TheFaQQer]

What do you mean? I've paid all my tax up front? I pay low salary to avoid higher rate and take dividends as rest of income which has already been taxed (Corp tax).

If you take more in dividends that then put you into the higher tax rate, then there is additional personal tax to pay on the income from dividends.

[Jubber]

If you take more in dividends that then put you into the higher tax rate, then there is additional personal tax to pay on the income from dividends.

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.

[Diestl]

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.

Ah I wasnt aware of that! What percentage is it of income?

[EternalOptimist]

Ah I wasnt aware of that! What percentage is it of income?

very roughly

(income - 30k) * 0.15

[gingerjedi]

Yes - quite a bit too (if you take lots as divis)- and this is what the OP was asking - how do you make provision for this extra tax.

I avoid higher rate tax by having a crap rate and being benched for half the year.

[Ruprect]

I avoid higher rate tax by having a crap rate and being benched for half the year.

Lol - Viz top tips