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Director Dividends

On Cloud 9 Accounting Dividend Support

Dividends​

The best way to get money our your company and the first £2,000 is tax-free!

Via your DLA, we can manage your tax efficiency and ensure you only pay what you are due to in tax.

 What are Dividends

Dividends are how shareholders/Directors of their own business take their money out.

Dividends are payable after tax on your profit, so if you made £100k after-tax,£81k is available to take as a dividend after tax.

 

As a Limited company, you do not need to take it all out, thus saving you money in tax and giving you control of when you take your money out, a vital advantage of a Limited company.

Dividends are paid After paying Corporation Tax

E.g., You Make £100,000 in profit

Corporation Tax is £19,000

leaving £81,000 available for Dividends

Dividend Tax

Your first £2,000 of your dividends are tax-free

 

The next £48,000 are taxed @ 8.75%, £4,200

 

Dividends that are taken out above £50,000 you pay 33.75%

The benefit of Dividends is you can take them in the Tax year of your choice

Take £100,000 in one tax year, pay - £21,075 in tax

Spread it over 2 Tax years pay £8,400