Directors Dividends 2010/11

[daisyflower]

Hi
We are coming to our ltd company year end, and have had a fabulous (at last !) year

My husband retires in November (65)- so will be picking up the state pension, therefore we need to get out as much money from the company as we can.

We both take a salary of £475 pm month = £5700 pa

Please can someone let me know what the max dividend that we can take without going into the higher rate tax bracket

Im not great at working the maths out, so would be very grateful if someone could help

Many Thanks

Daisy

 

[UKSBD]

Approx £34,000 each

http://www.contractorcalculator.co.uk/Dividend_Tax_Calculator.aspx

 

[elaine@cheapaccounting]

see here for 2010 / 2011

http://www.cheapaccounting.co.uk/blog/?p=1507

Note the increase in salary for 2010 / 2011 to £589 / month assuming no other income.

Always best to get your accountant to check specifics for your circs though.

 

[MyAccountantOnline]

Dont forget you need to gross up the dividends when doing the calculations.

 

[elaine@cheapaccounting]

Dont forget you need to gross up the dividends when doing the calculations.

yes the blog does explain that

 

[daisyflower]

perfect - thanks for the link!

net dividend £34360 - gross £38177

D

 

[Rialto101]

see here for 2010 / 2011

Note the increase in salary for 2010 / 2011 to £589 / month assuming no other income.

Always best to get your accountant to check specifics for your circs though.

Hi Elaine.

This was an awesome post. But (and here's the big BUT), this information relates to TY 2011 / 2012. Do you have an equivalent blog for the current tax year (i.e 2010 / 2011).

Specifically, I'd like to know:

* How much I can pay as Salary without Income Tax, Employee's or Employer's NIC whilst at the same time ensuring that I still get the usual statutory benefits (Pension etc.).

* Assuming no other income for 2010 / 2011 apart from the salary above, how much I can pay in dividends without being subject to extra income tax on these?

Thanks in advance.

R

 

[BCR Insolvency]

Your husband is retiring in November you say and you want as much out as possible.

Does this mean you are looking at closing the company or ceasing to trade? If so then there is a more tax efficient way of extracting the money from the business than via dividends.

Please reply if this is the case or feel free to contact me direct.

Regards

Kevin

 

[daisyflower]

Does this mean you are looking at closing the company or ceasing to trade?

neither - its just that he will be getting a state pension, and an old company pension, so any salary from november will be liable for tax.

That what I mean about getting as much out of the company this year, as next he can't claim as much

Hope that makes sense !

 

[highlander99]

see here for 2010 / 2011

[Forum won't let me repost the link]

Note the increase in salary for 2010 / 2011 to £589 / month assuming no other income.

Always best to get your accountant to check specifics for your circs though.

Elaine, that is the position for 2011 / 2012 you have posted NOT 2010 / 2011