Re: A quick dividends question.

Thanks guys, but I didn't explain myself particulalrly well.

We each pulled out £4992 salary and £29,800 dividends..... £29,800/0.9 for
the 10% tax credit = £33,111 + £4992 = £38,103. Thereby allowing us to take
the remaining £208 tax free if so required.

This year coming then it'll be £33,600 * 0.9 = £30,240 + £5225 salary =
£2520 div/month + £435 salary/month.

Peter, our accountant does explain this - I just required a quick answer
which I now have thanks

Cheers all


"Martin" <ngng@xxxxxxxxxxxxxxxxxxxxxxxxxx> wrote in message
news:lIUNh.19466$7l1.3645@xxxxxxxxxxxxxxxxxxxxxxx

"Alan Milne" <no@xxxxxxxx> wrote in message
news:eu9226$1m9$1@xxxxxxxxxxxxxxxxxxxxxxxx
I hope someone can answer this please. I'm a director in a smallish,
newish
limited company.

Myself and the other director each draw £4992 annual salary
(£416/month).

At this point last year our accountant (who we aren't due to see again
for
a
few weeks), advised that we could pull out a total of £38,835/annum (the
rest in dividends and INCLUDING this £4992 salary) and pay no tax on the
combination. We've taken his similar advice over our previous 3 years'
trading and following honest self-assessment return have had no tax
liabilities.

I'm trying to establish what this £38,335 figure will have changed to as
a
result of the latest budget, so as we can set out our new slarries and
dividend expectations.

Can anyone plase advise?



The 06-07 figure is derived from Personal Allowance of £5,035 plus Higher
Rate tax threshold of £33,300 = £38,335.

The 07-08 equivalent is Personal Allowance of £5,225 plus Higher Rate tax
threshold of £34,600 = £39,825.

But beware the tax credits bit - as Mike has mentioned.

HTH

--
Martin

[Remove barrier to reply]



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