This tax year I received a small interest free loan from my ex-employer which was low interest but I have to pay back, this will go on my P11D. Within this same tax year I left permie employment and went contracting and set up my new limited company, I have decided to pay myself in dividends.
Does anyone know if the low interest loan declared on my P11D will have any bearing on the dividend tax liability for the dividend payments paid to myself via my new Limited company set up in July 2008 ?
I know that there is a dividend payment tax threshold after which you pay 25% tax on the dividends, would the low interest loan given to me by my ex employer have any bearing on that ? or are the two not related ?
