Dividend payment

[PierreGrand]

Hi,

Is there a maximum amount for a dividend payment ? If my limited company makes GBP 10k after tax, can it pay GBP 10k out as dividend (provided there is no other debt) ?

Thanks

 

[QuickHomeBuyers]

Hi,

Is there a maximum amount for a dividend payment ? If my limited company makes GBP 10k after tax, can it pay GBP 10k out as dividend (provided there is no other debt) ?

Thanks

Not sure how you would account for CT? Best speak to an accountant who may be able to save you some tax.

 

[MASSEY]

I think you can take a dividend up to 25k. dont quote me though.

But you need to watch the div payment does not push you into the next tax bracket or you have to page the theif tax man more.

 

[QuickHomeBuyers]

I think you can take a dividend up to 25k. dont quote me though.

But you need to watch the div payment does not push you into the next tax bracket or you have to page the theif tax man more.

There is no limit for dividend to be paid or recieved.

 

[elaine@cheapaccounting]

No limit on the amount of dividends as long as there is sufficient retained profit which is profit after corporation tax including retained profit b/f

 

[MyAccountantOnline]

I think you can take a dividend up to 25k. dont quote me though.

But you need to watch the div payment does not push you into the next tax bracket or you have to page the theif tax man more.

I suspect you have had some advice from your accountant to restrict a dividend to this amount to avoid a higher rate tax liability.

 

[Steven Tucker]

As elainec100 says, the important thing is that the dividends must not exceed the retained profit.
If you don't know how to work that out, get your accountant to do it.

The amount you pay out will also affect the amount of tax you pay, but that's probably a less important issue.

 

[elaine@cheapaccounting]

The amount you pay out will also affect the amount of tax you pay, but that's probably a less important issue.

Not necessarily ...

corporation tax will be the same
income tax - only additional income tax due if income exceeds lower rate threshold. Otherwise no additional income tax to pay