AbbieCadabra
Active Member
this relates to Directors of Ltd Co. with employees - salary/dividend split 2016 onwards.
anyone changing from the usual low salary & majority paid by dividend now the new rules are here?
those with a basic tax code of 1100L, £8052 gross annual salary & £5000 dividend with no other income = no personal tax due.
anything above £5k dividend will now attract 7.5% tax, so if you take dividends up to the basic tax limit - £2025 tax will now be due.
notional 10% tax credit on dividends now gone, but employer allowance for those who still qualify (not sole director companies) has increased from £2k to £3k.
explained in more info here, with examples.
will be discussing with our accountant but i'm also nosey as to what others are planning! (don't feel the need to provide actual figures, just rough amounts will do).
anyone changing from the usual low salary & majority paid by dividend now the new rules are here?
those with a basic tax code of 1100L, £8052 gross annual salary & £5000 dividend with no other income = no personal tax due.
anything above £5k dividend will now attract 7.5% tax, so if you take dividends up to the basic tax limit - £2025 tax will now be due.
notional 10% tax credit on dividends now gone, but employer allowance for those who still qualify (not sole director companies) has increased from £2k to £3k.
explained in more info here, with examples.
will be discussing with our accountant but i'm also nosey as to what others are planning! (don't feel the need to provide actual figures, just rough amounts will do).