Originally posted by Saint John
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Reply to: Going into higher rate dividend band
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Previously on "Going into higher rate dividend band"
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Self Assessment
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Originally posted by Saint John View PostIf dividend tax is due on basic and/or higher rate tax, is this treated as a business expense and paid from the business account or, because it is part of your individual self-assessment, payable from my personal bank account?
Any help is appreciated.
Otherwise it will come out of your personal bank account when you do you tax return at the end of the year and settle up anything you owe HMRC.
However, your accountant should be doing this for you if you have taken a payroll and personal tax return service from them. If you are having to ask these questions then you NEED to take those services from a qualified accountant.
HA
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I think you need to understand what you do a little better. Personal tax is a business expense? Really? :|
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Who pays the dividend tax?
If dividend tax is due on basic and/or higher rate tax, is this treated as a business expense and paid from the business account or, because it is part of your individual self-assessment, payable from my personal bank account?
Any help is appreciated.
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Originally posted by ruasonid View PostDon't HMRC pay interest if you have paid more tax than is due?
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Originally posted by hugebrain View PostOne thing to watch is that they won't just ask for the tax you owe, but tax for the next year too. So if you take a lot or you can end up in a tax death spiral. You have to declare extra dividends the next year to pay the tax that you wouldn't owe if you didn't have to declare the dividends to pay the tax in advance.
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Originally posted by Louisa@AardvarkAccounting View PostBut if it's only a one-off that you are going to take this level of income, can you ask to reduce the following year's POA in advance.
Just remember to do this, or you'll be waiting longer for HMRC to give you your money back, if you are planning on taking less taxable income next year.
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But if it's only a one-off that you are going to take this level of income, can you ask to reduce the following year's POA in advance.
Just remember to do this, or you'll be waiting longer for HMRC to give you your money back, if you are planning on taking less taxable income next year.
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Originally posted by ContractorBanking View PostI may need to take out a slightly higher dividend this year (an extra £6k) and go into the higher-rate dividend tax band.
Apart from paying tax at 32.5% on the additional dividend rather than 7.5%, are there any disadvantages? Is the mere fact that I'm in the higher divi bracket have any repercussions?
thanks
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Originally posted by pr1 View PostIf you're claiming childcare vouchers your tax free amount changes if you become a higher rate taxpayer
It doesn't include dividend income.
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If you're claiming childcare vouchers your tax free amount changes if you become a higher rate taxpayer
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Personal Savings Allowance
The Personal Savings Allowance (amount of tax free savings income you can receive each year) also drops from £1,000 to £500 when you go into higher rate band.
https://www.gov.uk/government/public...ings-allowance
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What NLUK said.
If you make lots of money and want it in your hands, you're going to pay fairly sizeable amounts of tax. There are ways to avoid that tax, but most of the legal ones revolve around not getting that money into your hands to spend right now (eg putting it into a pension/leaving it in the company).
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If your income goes over the £50K bracket, don't forget about the child benefit tax charge (in you are claiming any - as some of this could be clawed back on your self assessment).
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Nope. You're just get hung up on the figures that's all. Don't let the tax dog wag the tail. Take what you need, live your life, pay the tax and off you go... Oh and hang up the tin foil hat on the way out
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