Directors Standard Salary:
Based on you taking a salary of £736 per month (£8,832 total for the year) from your limited company, you can take an additional £41,438 dividends for the year before higher rate tax is charged*.
Please ensure the company has sufficient profit to pay this level of dividends.
This will bring you up to the higher rate tax limit and give you an estimated tax liability of £2,677.50 due by 31st January 2023. As the payment due is over £1,000, a payment on account will also be required.
*If you anticipate any additional personal income such as rental property, interest, dividends from shares, benefit in kind or any other taxable income, please update your portal and provide the additional to your accountant and they will advise.
As a general guide (and based on only the £1,047 per month salary) here are the anticipated levels of tax due on specific levels of dividend payments:
Net Dividend Est Personal Tax Bill 2021/22
£10,000 £319.65
£20,000 £1,069.65
£30,000 £1,819.65
£40,000 £2,569.65
£50,000 £5,460.15
£75,000 £13,585.15
£91,168 = £18,839.75
Directors Advanced Salary:
Based on you taking a salary of £797 per month (£9,564 total for the year) from your limited company, you can take an additional £40,706 dividends for the year before higher rate tax is charged*.
Please ensure the company has sufficient profit to pay this level of dividends.
This will bring you up to the higher rate tax limit and give you an estimated tax liability of £2,677.50 due by 31st January 2023. As the payment due is over £1,000, a payment on account will also be required.
*If you anticipate any additional personal income such as rental property, interest, dividends from shares, benefit in kind or any other taxable income, please update your portal and provide the additional to your accountant and they will advise.
As a general guide (and based on only the £736 per month salary) here are the anticipated levels of tax due on specific levels of dividend payments:
Net Dividend Est Personal Tax Bill 2021/22
£10,000 £374.55
£20,000 £1,124.55
£30,000 £1,874.55
£40,000 £2,624.55
£50,000 £5,698.05
£75,000 £13,823.05
£91,168 = £18,839.75
Directors Employer Salary:
Based on you taking a salary of £1,047 per month (£12,564 total for the year) from your limited company, you can take an additional £37,706 dividends for the year before higher rate tax is charged*.
Please ensure the company has sufficient profit to pay this level of dividends.
This will bring you up to the higher rate tax limit and give you an estimated tax liability of £2,677.50 due by 31st January 2023. As the payment due is over £1,000, a payment on account will also be required.
*If you anticipate any additional personal income such as rental property, interest, dividends from shares, benefit in kind or any other taxable income, please update your portal and provide the additional to your accountant and they will advise.
As a general guide (and based on only the £1,047 per month salary) here are the anticipated levels of tax due on specific levels of dividend payments:
Net Dividend Est Personal Tax Bill 2021/22
£10,000 £599.55
£20,000 £1,349.55
£30,000 £2,099.55
£40,000 £3,423.05
£50,000 £6,673.05
£75,000 £14,798.05
£91,168 = £18,839.75
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