Dividend tax

[ASB]

There is no "dividend tax". Receipt of dividends (and their associated tax credit of 1/9) may push you into a higher tax banding based on your total income for the entire year.

It is treated the same way as any other income. PAYE is simply a convenient method of charging tax as you go along on certain types of income - the clue is in the name "pay as you earn".

There are a load of tax calculators out there (e.g. the HMRC one). It's pretty easy to bung in your income and see what the liability is.

From the number of the OP.

Total income: 22,000 + 2,444 + 14,000 = 38,444

Provided there is no other income (e.g. rental income, other dividends, interest, self employed income etc) and there is the normal personal allowance (i.e. it's not substantially reudced by BIK etc) then this should all fall in the standard rate band and there is nothing else to pay.

But as I say, lob it in the IR online tax return and it'll give the results surprisingly painlessly (except for paying of course).

[XLMonkey]

Hee hee. First 'laugh out loud in a dead office moment' of 2010 attributed to XLMonkey

HTH

[xoggoth]

What 1st commenter said. Just fill the thing in and it will tell you what you owe or otherwise.

[northernladuk]

Just you - everyone else giggles and thinks "at least this one will be ahead of me in the queue for a tax investigation".

Hee hee. First 'laugh out loud in a dead office moment' of 2010 attributed to XLMonkey

[TheCyclingProgrammer]

Is it just me that worries when people are doing their own tax and then ask questions like this?

Nope. "Many thanks as im clueless about all this." says it all to me.

Nothing wrong with doing your own accounts but if you're going to do this please take the time to learn the basics.

That being said, XLMonkey makes a good point.

[XLMonkey]

Is it just me that worries when people are doing their own tax and then ask questions like this?

Just you - everyone else giggles and thinks "at least this one will be ahead of me in the queue for a tax investigation".

[northernladuk]

Is it just me that worries when people are doing their own tax and then ask questions like this?

[VectraMan]

Did you pay any salary whilst you were working under your Ltd, or just dividends?

Can't remember the numbers exactly, but with an £11K salary I was able to pay something like £25K dividends last year and just stay out of the upper band. So if £14K was your only salary, you should be about the same and at worst be slightly over and only have a small amount to pay.

SJD have a calculator, which I think was a free download. Put in your salary, and it tells you how much you can pay in dividends before exceeding the threshold.

[rootsnall]

I have a question regarding my self assessment which i will be filing in the next few days.
I previoulsy worked through my LTD company from April to Oct...then i was out of work until beginning of feb. In feb i had to take a different job and have been PAYE since.
Regarding my LTD company, i took approx £22k dividends last year.
My question is will i need to pay tax on these or do i fall under the threshold level and what impact will me now working through paye have on this.
Just to give some more infor from Feb to April (since i was working paye) i grossed £14k and paid tax of £3.8k. Is this going to affect my dividends?

Many thanks as im clueless about all this.

Just follow what it says on your self assessment. You should have tax vouchers from your divi payments and they show you what to fill in, there is a tax credit of 10% against your final tax bill.

[specialized]

I have a question regarding my self assessment which i will be filing in the next few days.
I previoulsy worked through my LTD company from April to Oct...then i was out of work until beginning of feb. In feb i had to take a different job and have been PAYE since.
Regarding my LTD company, i took approx £22k dividends last year.
My question is will i need to pay tax on these or do i fall under the threshold level and what impact will me now working through paye have on this.
Just to give some more infor from Feb to April (since i was working paye) i grossed £14k and paid tax of £3.8k. Is this going to affect my dividends?

Many thanks as im clueless about all this.