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TonyTax, Tax Consultant
Category: Tax
Satisfied Customers: 15915
Experience:  Inc Tax, CGT, Corp Tax, IHT, VAT.
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Quick question - My limited company earnings thus

Resolved Question:

Hi Howard, quick question - My limited company earnings thus far in 6 months is £37800 and my expenses are minimal. Aside from a £1000 salary/month, I take dividends. Could you tell me what is the maximum salary + dividend I can take with the earnings thus far?
Submitted: 1 year ago.
Category: Tax
Customer: replied 1 year ago.
I need to show £32000+ as income for the period - salary and dividends combined. Hence the question about what is the maximum I can get out of £37,800. Thanks
Expert:  TonyTax replied 1 year ago.
Hi. If you have a profit of £31,000 say (£37,800 - £800 minimal expenses say - £6,000 salary) the corporation tax on that would be £6,200. That would leave £24,800 that you could distribute as a dividend. A £24,800 dividend grosses up to £27,555 as it carries a notional 10% tax credit. Your gross income for tax purposes would be £33,555. I hope this helps but let me know if you have any further questions.
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Customer: replied 1 year ago.
Hi TonyTax
Thank you for your kind response. Does it mean, the 10% tax credits can be shown as income? Would you know if the UKBA (Home Office) views it as income too?cheers

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