Declaring Dividends on the Tax Credits form

[sage@reillymcmordie]

Declaring Dividends

When you declare a dividend it is paid net of a 10% tax credit by the company. The gross dividend would be £15,555. When your personal income does not exceed the basic tax rate limit it is taxed at 10%. There would be no further tax liability. Higher rate tax payers are liable to pay tax at 32.5% on dividend income falling above the higher rate limit.

[Madocks]

Morning,

My first post here - so go gentle

Rightio then..........

The LTD company I own made 49k last year, seperated into the following categories;

14k Wages
18k Expenses
17k Dividend

Of this 17k dividend I paid the 21% corporation tax, so the dividend paid to share holders (me) was 13.4k.

When I declare the income for last year is it simply 14k wages + 13.4k Dividend?

Or is it 14k Wages + 17k dividend?

Surely the company paid tax on the dividend, it did not go through my tax code therefore I declare the figure I recieved? and not the company profit?

I have also read on the internet about having to pay tax credits on dividend? does that apply to a ltd company? am i doing it wrong?