MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
I’m hoping for a quick bit of advice before I bring this up with my accountant.
I’m an IT consultant (aren’t we all on here) and I hold a 20% share in an Ltd company.
I have just been given a Bonus which I was expecting a Dividend. I’m under the assumption that Dividends are taxed 10% with a 10% tax credit. – 0% tax.
However I have been paid this in my September PAYE which means that it has NI tax and all other PAYE taxes. I’ve been taxed over a 3rd of the bonus (expected Dividend)
Could someone explain if I’m way off the mark and I should just concentrate fixing servers and leave the monies to someone else?
Thanks
- If it helps I’m earning less that £35k even with the bonus.
Dividends are paid at a value per share to all shareholders; if this was a personal bonus to you (as in; no-one else was getting it) then it couldn't have been done as a dividend.
If you earn less than £35k and are paying tax and/or NI (employer/employee) you need to have a word with yourself..., and change Accountant.
The only tax paid ought to be Corporation tax.