How much more in dividends this tax year?

[rmmc]

It would be worth noting that it would be more tax efficient if the company makes pension contribution.

[rmmc]

Personal pension payment

The difference could be related to if the pension payment made by you.

If an individual makes contribution to the personal pension, the pension fund claim tax credit of 25% of net payment. For example if you want to contribute £100o into pension fund you actually pay £800 into pension, HMRC makes up difference of £200.

If you are higher tax payer you need to claim rest 20% via tax return. So if you paid £4,368.40, then your basic rate will be extended by £1,092 to give you 20% tax relief.

If pension payment made by you then you could furhter draw down further £7128.

If pension payment made by the company then you could further draw down £6,145.

Hope this helps

[joey122]

Given your figures, my spreadsheet comes back with exactly the same figure that you have. Even without the pension offset, it's still in the region of 6.8K. So, your accountant seems to be way off.

I would send your acc a spreadsheet with your calculations and ask them to review it.

IANAA, etc.

Can you share that spreadsheet please?

[teabag]

Thanks guys : ) I've sent him a mail with these figures. It will be interesting to see what kind of a reply I get. It looks like I might need to start thinking about getting myself another Accountant.. Any recommendations for any accountancy firm whose name isn't three letters ??

[Robot]

Before anyone says "ask your accountant" I have and I'm a bit dubious about his response of £1,000 . So I'd appreciate if anybody could cast their eye over what I'm thinking and let me know if its correct or not.

I reckon that my personal allowance of £6,475 and the higher rate threshold of £37,400 means that I can have personal income of £43,875 before I would move into the 40% rate. I

My income so far this year has been:

Gross Interest Received - £ 2824.48
Dividends to date (£20,000 not including the dividend credit) - £22,222 (Including the dividend credit)
Salary £12,000

Total Income 2009-2010 to date £37,046.48

It’s my understanding that I would take my pension payments of £4,368.40off my total income to date.

If I do this it comes to £32, 678.08

Difference between (higher bracket amount) AND (Total Income - Pension payments.) £ 11,197

Additional Dividend to pay myself would be 90 % of £ 11,197, which would be £10,077.3

Am I on the right track here or am I getting horribly confused somewhere ? Any idea where my accountants figure of £1,000 may have come from ?

Thanks

Q. Who has paid the pension contribution, you or your company ?

You can not deduct it from your income if your company paid it.

If you paid personally, how did/are you going to take the funds out of the company to pay for it, dividends salary ?

Do you have other income, BIKs, (company car overdrawn loan account) rental income ? if not then cal is

37,046.48 - £43,875 / 10*9 = Net dividends.

Robot

[TroubleAtMill]

Given your figures, my spreadsheet comes back with exactly the same figure that you have. Even without the pension offset, it's still in the region of 6.8K. So, your accountant seems to be way off.

I would send your acc a spreadsheet with your calculations and ask them to review it.

IANAA, etc.

[malvolio]

No idea where your acccountant gets his figures from. Nor has anyone else, I suspect. Ask him for a breakdown of his answer on the grounds that (a) you pay him to answer questions and (b) one of you has got it wrong so you had better find out which in case (c) one of you is declaring the wrong tax somewhere...

[teabag]

Before anyone says "ask your accountant" I have and I'm a bit dubious about his response of £1,000 . So I'd appreciate if anybody could cast their eye over what I'm thinking and let me know if its correct or not.

I reckon that my personal allowance of £6,475 and the higher rate threshold of £37,400 means that I can have personal income of £43,875 before I would move into the 40% rate. I

My income so far this year has been:

Gross Interest Received - £ 2824.48
Dividends to date (£20,000 not including the dividend credit) - £22,222 (Including the dividend credit)
Salary £12,000
Total Income 2009-2010 to date £37,046.48

It’s my understanding that I would take my pension payments of £4,368.40off my total income to date.

If I do this it comes to £32, 678.08

Difference between (higher bracket amount) AND (Total Income - Pension payments.) £ 11,197

Additional Dividend to pay myself would be 90 % of £ 11,197, which would be £10,077.3

Am I on the right track here or am I getting horribly confused somewhere ? Any idea where my accountants figure of £1,000 may have come from ?

Thanks