Reply to: Take a big dividend this year?

[jamesbrown]

Yes, as indicated above, you can do this at any time via an SA303 or, perhaps more conveniently, in the "Payments on Account" section of your SATR/SA100.

[MrMarkyMark]

I asked my accountant about this as I'm taking a large dividend this tax year, as a one-off.

She says that she can apply to reduce the payments on my tax return, so I shouldn't need to do anything.

HTH.

Essentially that is what we are talking about, reducing the payments on account, either you can do it yourself, or get your accountant to do it.

[iainp999]

I did the same, but will reduce the payment on account as has already been suggested.

I asked my accountant about this as I'm taking a large dividend this tax year, as a one-off.

She says that she can apply to reduce the payments on my tax return, so I shouldn't need to do anything.

HTH.

[northernladuk]

How do you do this?

You ask your accountant about it to make sure it fits the purpose in your situation and then if it does they will advise how to do it i'd say.

[TheFaQQer]

How do you do this?

Complete form SA303 either by post or online.

[Gaz_M]

You can reduce the payment on account if you want (assuming you're not going to extract £100k next year, and you're confident about that).

How do you do this?

[jamesbrown]

I risked it and bumped by income to £100k. I didn't think about the tax on account thing. Too late now! I guess I'll get it back eventually. If my circumstances change I could live to regret it of course

You can reduce the payment on account if you want (assuming you're not going to extract £100k next year, and you're confident about that).

[MrMarkyMark]

I risked it and bumped by income to £100k. I didn't think about the tax on account thing. Too late now! I guess I'll get it back eventually. If my circumstances change I could live to regret it of course

I did the same, but will reduce the payment on account as has already been suggested.

[Platypus]

I risked it and bumped by income to £100k. I didn't think about the tax on account thing. Too late now! I guess I'll get it back eventually. If my circumstances change I could live to regret it of course

[bobspud]

If you don't need it then leave it alone. IMHO. at the moment the reason everyone is fed up is because the higher rate will be 32% not 25% but if George gets his way then the higher rate threshold will go up to 50k and you will be able to take more out at the lower 7% tax threshold.

[dogzilla]

If you don't need the money I'd be tempted to leave it in the business until you do need it.

[jamesbrown]

Trouble is taking a wodge over the lower rate means you have to also pay next years tax on account as well so it's like being taxed at 80% in a way....

Only if you don't reduce the payment on account (i.e. because you don't plan to take a large dividend the next year). If you're wrong, you'll pay interest on the difference, of course.

[stek]

Trouble is taking a wodge over the lower rate means you have to also pay next years tax on account as well so it's like being taxed at 80% in a way....

[Pherlopolus]

If I had your problem, I would take it out now also...

[northernladuk]

I was being a little tongue in cheek as my standard line is asking accountants but I think in this case I would be factoring a lifestyle choice in over tax efficiency.

There is more than enough money there to not have to let the tax tail wag the dog. If I had that kind of money in the business I'd be quite happily taking a tax hit to enjoy my personal life... If you've no significant other half you' best enjoy it while you can....