Salary and dividends on top of Benefits

Discussion in 'Accounts & Finance' started by bmqz, Sep 15, 2014.

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  1. bmqz

    bmqz UKBF Newcomer Free Member

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    If you receive Carer's Allowance and Universal Credit and the amount is still under your Income Tax Personal Allowance, can you still pay yourself a salary and/or dividends and not be subject to tax as long as it is under the Personal Allowance of £10000?

    For example:

    If I received carer's allowance (£61.35) a week and paid myself a salary of only £100 a week (you cannot earn more than £102 a week if you care on Carers Allowance), since it comes up to £8390.20 a year, can I pay myself the £1609.80 in dividends?


    Thanks in advance. :)
     
    Last edited: Sep 15, 2014
    Posted: Sep 15, 2014 By: bmqz Member since: Jul 17, 2014
    #1
  2. Newchodge

    Newchodge UKBF Big Shot Free Member

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    At that level dividends are not subject to tax, so yes, as far as income tax is concerned. I'm not so sure about carer's allowance.
     
    Posted: Sep 15, 2014 By: Newchodge Member since: Nov 8, 2012
    #2
  3. MyAccountantOnline

    MyAccountantOnline UKBF Legend Full Member

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    Dont forget when you do any calculations you have to 'gross-up' dividends to include the tax credit you cant just include the amount you've received.
     
    Posted: Sep 16, 2014 By: MyAccountantOnline Member since: Sep 24, 2008
    #3
  4. David Story

    David Story UKBF Contributor Free Member

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    Hi
    I've got a question too :)
    Do I have to include company benefits in benefits calculator even if they are not taxable this year ?
     
    Posted: Oct 10, 2014 By: David Story Member since: Jun 3, 2013
    #4
  5. Scalloway

    Scalloway UKBF Legend Free Member

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    What do you mean by company benefits?
     
    Posted: Oct 10, 2014 By: Scalloway Member since: Jun 6, 2010
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  6. David Story

    David Story UKBF Contributor Free Member

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    I'm sorry, I meant dividends of course
     
    Posted: Oct 10, 2014 By: David Story Member since: Jun 3, 2013
    #6
  7. Scalloway

    Scalloway UKBF Legend Free Member

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    They are taxable income, even your income is below the personal allowance.
     
    Posted: Oct 10, 2014 By: Scalloway Member since: Jun 6, 2010
    #7
  8. David Story

    David Story UKBF Contributor Free Member

    31 0
    Yes, but they are taxable in next tax year. That's why I'm confused.
     
    Posted: Oct 12, 2014 By: David Story Member since: Jun 3, 2013
    #8
  9. Scalloway

    Scalloway UKBF Legend Free Member

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    Your income is taxable in the year it is earned. You may pay tax the next year if insufficient tax has been deducted when it is paid.
     
    Posted: Oct 12, 2014 By: Scalloway Member since: Jun 6, 2010
    #9
  10. David Griffiths

    David Griffiths UKBF Legend Full Member - Verified Business

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    The company pays corporation tax on its profits, before dividends are deducted, in the accounting year that the profits are earned

    The dividends are taxable income for the shareholders in the income tax year in which they are paid
     
    Posted: Oct 12, 2014 By: David Griffiths Member since: Jun 21, 2008
    #10
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