you can.
What you might also consider is that with inflation on the up, and possibly going to get to 9%, you might want to take more out.
9% inflation on £17,000 makes it in effect £15,596 after 1 year. (source Impact of Inflation on Savings Calculator | RL360 )
You could take say £7k now. Pay 32.5% on the extra £5k (that's £1,625 tax assuming higher rate).
The tax is only slightly higher than the inflation, and you have £5,375 cash to put in stocks and shares ISA (or gold/bitcoins/etc.). Or £2k cash as you desire, and £3,375 to save. Either way it's out of the company. Inflation will still impact personal cash but you have more options
Inflation might peak lower than that, but you can do the sums now.
You could get the £17k in £2k chunks over multiple years, but the £2k threshold isn't guaranteed.
Just a thought. Tax saving isn't the only goal.
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Accounting 101...
Dividends are paid from profits.
Retained profits have had the Corpiration Tax paid, as opposed to this year's which haven't
They are all, however profits.
So, what is the answer...?Leave a comment:
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Retained profit from previous year - loss made this year - can I pay £2k dividend
As the title, I have around 17k retained profit in ltd co, been in perm role for more than an year now, but would like to take the £2k dividend.
This page says, I can take dividends out in such a case: https://www.accountwise.co.uk/take-d...-while-you-can
Any pointers/suggestions will be helpful.
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