Dividends. Remember that dividends can only be paid from your company profits and no more frequently than monthly. These payments do not effect your Corporation tax but they will effect your personal tax. For 2017/18 you received the first £5,000 of dividends tax free, for this tax year it is reduced to £2,000. After that you are personally taxed at 7.5% in your personal tax return for basic rate tax payers and then 32.5% for higher rate payers and finally 38.1% at the highest rate. There are still no National Insurance contributions to pay on dividends though.
The latest news from PMC Partnership incorporating Pomfreys Accountants – 15 July 2022.