Dividend - paying tax credit

Log in to reply
S

Shirty Girl

Free Member
Aug 4, 2008
31
1
  • #1
    This is a really simple question but I can't find the answer to it anywhere ...

    I want to pay myself a dividend.
    I know I have to deduct a 10% tax credit. I then pay myself the remaining 90%.

    Who do I pay the 10% tax credit to? How do I pay it? When do I pay it?

    Many thanks,

    Helen
     
    Maslins

    Maslins

    Free Member
    Feb 12, 2009
    800
    220
    Tunbridge Wells
  • #2
    You don't deduct anything from the dividend. The 10% is a notional tax that you don't really pay. It only becomes relevant when you fill in your tax return.

    Eg If you want to pay a £5k dividend (that's £5k of after tax profits from the ltd co), draw out £5k, and prepare a dividend voucher showing net dividend £5k, gross dividend £5.556k, tax credit £0.556k.

    The £5.556k goes on your tax return as divis received, and the £0.556k shows kinda like tax paid at source.
     
    Upvote 0
    Log in to reply

    Latest Articles

    Top Bottom
    Community
    Articles
    Menu