Thanks thats really helped.
Regards
G ;0)
- Visitors can check out the Forum FAQ by clicking this link. You have to register before you can post: click the REGISTER link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below. View our Forum Privacy Policy.
- Want to receive the latest contracting news and advice straight to your inbox? Sign up to the ContractorUK newsletter here. Every sign up will also be entered into a draw to WIN £100 Amazon vouchers!
Reply to: Dividend Calculation Query
Collapse
You are not logged in or you do not have permission to access this page. This could be due to one of several reasons:
- You are not logged in. If you are already registered, fill in the form below to log in, or follow the "Sign Up" link to register a new account.
- You may not have sufficient privileges to access this page. Are you trying to edit someone else's post, access administrative features or some other privileged system?
- If you are trying to post, the administrator may have disabled your account, or it may be awaiting activation.
Logging in...
Previously on "Dividend Calculation Query"
Collapse
-
With that much income you're already into higher rates of tax unless you have an exceptionally high tax code, so your accountant is correct in that any further dividend you take will result in tax of effectively 25% of the amount you take. So take £10,000 and your tax will be £2,500. That extra tax will be on your 10/11 tax return, payable in January 2012.
Assuming a normal tax code of 647L a person can have income of £43,875 before higher rates.
You should also bear in mind the dividend tax credit of 10% - a dividend of £22,000 is in fact £24,444 for tax purposes. That gross dividend (in higher rates) is taxed at 22.5% which equates to 25% of the net.
Leave a comment:
-
Dividend Calculation Query
Hi Contractors
So far this is my income for the 10/11 FinYear and so far I took 22k as dividend. and how much more I can take as dividend and what will be the tax amount if i take any more?. When I spoke to my accountant he says that I have to pay 25% tax if i want to take 10k more dividend. Just confirming with you.
Gross Salary
April ---- £1,000 ------- through own company
May ---- £2,863 ------- through different company
June ---- £4,583 ------- through different company
July ---- £4,583 ------- through different company
Aug ---- £4,583 ------- through different company
Sept ---- £4,583 ------- through different company
Oct ---- £2,500 ------- through different company
Total £24,695
Dividend 22,000
-----------------------------------
Total : 46,695
Thank you so much in advance.
Regards
GTags: None
- Home
- News & Features
- First Timers
- IR35 / S660 / BN66
- Employee Benefit Trusts
- Agency Workers Regulations
- MSC Legislation
- Limited Companies
- Dividends
- Umbrella Company
- VAT / Flat Rate VAT
- Job News & Guides
- Money News & Guides
- Guide to Contracts
- Successful Contracting
- Contracting Overseas
- Contractor Calculators
- MVL
- Contractor Expenses
Advertisers
Contractor Services
CUK News
- Streamline Your Retirement with iSIPP: A Solution for Contractor Pensions Sep 1 09:13
- Making the most of pension lump sums: overview for contractors Sep 1 08:36
- Umbrella company tribunal cases are opening up; are your wages subject to unlawful deductions, too? Aug 31 08:38
- Contractors, relabelling 'labour' as 'services' to appear 'fully contracted out' won't dupe IR35 inspectors Aug 31 08:30
- How often does HMRC check tax returns? Aug 30 08:27
- Work-life balance as an IT contractor: 5 top tips from a tech recruiter Aug 30 08:20
- Autumn Statement 2023 tipped to prioritise mental health, in a boost for UK workplaces Aug 29 08:33
- Final reminder for contractors to respond to the umbrella consultation (closing today) Aug 29 08:09
- Top 5 most in demand cyber security contract roles Aug 25 08:38
- Changes to the right to request flexible working are incoming, but how will contractors be affected? Aug 24 08:25
Leave a comment: